Investing.com - Upbeat third-quarter earnings sent broader U.S. stock indices gaining on Tuesday despite hit-or-miss data.
At the close of U.S. trading, the Dow 30 rose 1.12%, the S&P 500 index rose 1.19%, while the NASDAQ Composite index rose 1.75%.
The CBOE Volatility Index index, which measures the outlook for market volatility, was down 10.29% at 14.39.
Despite mixed U.S. data, upbeat corporate earnings drew applause on Wall Street.
Better-than-expected third-quarter results from Amgen Inc (NASDAQ:AMGN) and T-Mobile US Inc (NYSE:TMUS) sent stock prices rising on Tuesday, while news International Business Machines (NYSE:IBM) approved a new share buyback fueled the rally as well.
Many earnings reports have beaten expectations this season, which pushed up stock prices on Tuesday.
Elsewhere, the U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, decreased by 1.3% last month, disappointing expectations for a gain of 0.5%.
Orders for durable goods in August were revised to a decline of 18.3% from a previously reported drop of 18.4%.
Durable goods are typically designed to last at three years and include trains, planes and automobiles.
Core durable goods orders, which are stripped of volatile transportation items and consist of components like household appliances, inched down by 0.2% in September, defying forecasts for a 0.5% gain. Core durable goods orders rose by 0.7% in August.
Orders for core capital goods, a key barometer of private-sector business investment, fell by 1.7% last month, worse than expectations for a 0.6% increase and after rising 0.3% in August.
Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in September, disappointing forecasts for a 0.7% gain, after rising 0.1% in the preceding month.
Elsewhere, the Conference Board reported earlier that its consumer confidence index jumped to 94.5 this month from 89.0 in September, boosted by a more favorable assessment of the current job market and business conditions.
Economists had expected the index to tick down to 87.0 this month, and stocks rose on the news.
The report left many investors concluding that while demand for goods and services in the U.S. remains cautious, consumers still remain upbeat over the U.S. economy and will ramp up spending soon.
Many investors jumped to the sidelines ahead of the Federal Reserve's statement on monetary policy on Wednesday.
The Fed is widely seen closing its bond-buying program, though uncertainty remains as to whether or not the statement will contain dovish or hawkish language surrounding interest rates.
Leading Dow Jones Industrial Average performers included Caterpillar Inc (NYSE:CAT), up 2.66%, United Technologies Corporation (NYSE:UTX), up 2.00%, and Chevron Corporation (NYSE:CVX), up 1.83%.
The Dow Jones Industrial Average's worst performers included Merck & Company Inc (NYSE:MRK), down 1.06%, Coca-Cola Company (NYSE:KO), down 0.49%, and Wal-Mart Stores Inc (NYSE:WMT), down 0.31%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 1.34%, France's CAC 40 rose 0.39%, while Germany's DAX rose 1.86%. Meanwhile, in the U.K. the FTSE 100 rose 0.61%.
On Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement. Expect markets to move on any indication as to when interest rates may rise in the U.S.