S&P 500, Nasdaq close at record highs as earnings roll in

The Nasdaq composite index climbed 105.56 points, or 1.3%, to 8,120.82, beating the record high close of 8,109.69 it reached on August 29. And they've been encouraged by an increasingly hands-off Federal Reserve, which has signaled this year that it may not raise interest rates at all in 2019 after seven increases the prior two years.

Another big gainer was Lockheed Martin Corp, whose shares jumped 6.5% after it reported upbeat quarterly results and lifted its full-year profit forecast on strong demand for its missiles and fighter jets.

Twitter Inc shares soared 16%, hovering near a nine-month high, after the social media company posted better-than-expected quarterly revenue and a surprise rise in monthly active users.

The Dow Jones Industrial Average rose 145.34 points, or 0.55%, to 26,656.39, the S&P 500 gained 25.71 points, or 0.88%, to 2,933.68 and the Nasdaq Composite added 105.56 points, or 1.32%, to 8,120.82.

In New York, the Dow Jones industrial average was up 107.23 points at 26,618.28.

The Nasdaq is up 32 points or 0.40% at 8047.40.

Hasbro Inc rose 14.2% after the toymaker reported a surprise quarterly profit. Analysts are watching corporate reports closely this week as they gauge whether first quarter earnings for USA companies will be as bad as predicted.

"There has been concern about a synchronized global slowdown in some of these more cyclical companies, like industrials, so we're seeing some earnings which is soothing concerns", said Jeff Zipper managing director of Investments at U.S. Bank Wealth Management in Palm Beach, Florida.

Despite the strong start, there are still many big companies yet to report earnings and it's far too early to conclude that the results will beat Wall Street's modest expectations. The stock rose 1.7%.

Verizon Communications Inc dropped 2.2% after the US wireless carrier lost more phone subscribers than analysts had expected.

Defence contractor Lockheed Martin rose 4.5% and appliance maker Whirlpool climbed 3%.

Bond prices rose. The yield on the 10 year Treasury fell to 2.57% from 2.59% late Monday.

The June crude contract was up 94 cents at US$66.49 per barrel and the June natural gas contract down 6.1 cents at US$2.50 per mmBTU.

Nine of the 11 major S&P sectors were higher, with a rebound in healthcare, which gained 2%, providing the biggest boost. It closed just 0.3% below its intra-day record of 2,940.91 hit on September 21.

Procter & Gamble Co fell 2.7 per cent, and was the biggest drag on the market after reporting a decline in its third-quarter operating margin. The euro weakened to $1.1215 from $1.1259.