NEW YORK - US stocks advanced Tuesday (New York time), with the S&P 500 Index on pace for its best two-day climb since June, as investors looked for early hints on the election amid a tight contest for president.
Wall Street stocks dipped in opening trading as Americans began to cast their ballots in the presidential election
Stocks had opened slightly lower, but quickly reversed in early trading..
Six minutes into trading Tuesday, the S&P 500 was down 0.3% at 2,124.78.
The S&P 500 Index rose 0.3% to 2,138.76 at 11:36 a.m. in New York, after wiping out a 0.4% slide. The gauge surged 2.2% Monday, spurred by the FBI's reiteration that Hillary Clinton's controversial handling of her e-mails wasn't a crime. The Dow Jones Industrial Average added 77.18 points, or 0.4%, to 18,336.78, and the Nasdaq Composite climbed 0.4%.
"There's still a relief rally occurring following [Monday]'s big gain," said Bill Schultz, who oversees $1.2 billion as chief investment officer of McQueen, Ball & Associates Inc. in Bethlehem, Pennsylvania. "Clinton represents less change, and positive news for her will be a positive for the market. Any uncertainty removed from an outlook is always good."
While the glare is firmly on the election, a bevy of earnings reports were contributing to some substantial moves in individual stocks. Among the most notable:
CVS Health Corp. headed toward the worst drop in seven years after cutting its full-year adjusted earnings range. Competitor Walgreens Boots Alliance Inc. lost 3%.
Hertz Global Holdings Inc. shares plummeted 43%, the most ever, after reporting a quarterly profit that badly trailed estimates and cut its annual earnings forecast.
Valeant Pharmaceuticals International Inc. tumbled 20% as new management cut the company's profit forecast to well below predictions and suggested there may be more bad news on the way.
Kindred Healthcare Inc. dropped to a 13-year low after also reducing its earnings outlook and saying it's exiting the skilled nursing facility business.
Priceline Group Inc. added 6.8%, rising to a record after its earnings excluding a writedown exceeded estimates.
Clinton and Republican Donald Trump have spent the past days campaigning in key battleground states as polls showed the race had tightened. State-by-state surveys indicate a narrow lead for the Democratic candidate, while websites that take bets on the presidential victor show her odds of winning the White House are generally about 80%.
The S&P 500 has been unable to push higher since reaching a record in August, wandering in a roughly 100-point band as investors assessed the political landscape, the likelihood for higher interest rates, corporate profits and economic data. It hasn't climbed for three consecutive sessions in more than a month, and on Friday capped its ninth straight daily drop -- its longest losing run since 1980. Still, the gauge closed Monday less than 3% from its all-time high.
Speculation on Clinton's chances also helped bolster odds on a Federal Reserve interest-rate increase next month. Data compiled by Bloomberg based on fed funds futures trading show an 86% probability of higher borrowing costs by year end, up from 76% on Friday.
Amid the political drama, earnings season is winding down, with only a handful of S&P 500 members releasing Tuesday. Analysts now predict earnings growth of 2.5% in the July-September period for the benchmark's constituents, reversing forecasts for a 1.6% decline at the start of the month. Retailers Macy's Inc., Kohl's Corp. and Nordstrom Inc. are due to report later this week.