NEW YORK — Stocks climbed broadly on Tuesday as investors who had been fretting over the Greek debt crisis and plunging Chinese stocks turned their attention back to the U.S. economy and corporate earnings reports.
JPMorgan Chase and Johnson & Johnson reported second-quarter profits that were stronger than expected. A government report showed that Americans cut back on spending at retailers last month, but some investors interpreted that as good for stocks since it may make the Federal Reserve more cautious when it starts raising rates for the first time in nine years.
“It’s back to the mindset that bad news is good news,” said James Abate, chief investment officer of Centre Funds. “We think (the Fed) will raise rates in September, but we don’t think it will be an aggressive tightening cycle.”
The gains were modest but widespread. Among the 10 industry sectors of the Standard and Poor’s 500 index, only utilities fell. It was the fourth gain in a row for the index.
The S&P 500 increased 9.35 points, or 0.5 percent, to 2,108.95. The Dow Jones industrial average gained 75.90 points, or 0.42 percent, to 18,053.58. The Nasdaq composite climbed 33.38 points, or 0.7 percent, to 5,104.89.
The Commerce Department said retail sales slipped 0.3 percent in June, the weakest showing since February.
Investors also were keeping an eye on Greece after the country struck a preliminary deal with its creditors.
Prime Minister Alexis Tsipras has to convince lawmakers to approve tax hikes and spending cuts by Wednesday to receive emergency money and reopen the country’s banks
.
