Apple shares rallied upon reporting rising earnings after hours. Earlier, the Dow surged to its fifth record high in a row. Fred Katayama reports.
Apple shares shot higher in after-hours trading Tuesday. Stronger-than-expected sales of iPhones drove quarterly revenue higher. Profit rose nearly 12 percent. Earlier, Wall Street kicked off August on a strong note as the Dow notched its fifth straight record close. Powering the Dow: gains in Goldman Sachs and 3M. FAO Economics chief economist Robert Brusca: SOUNDBITE: ROBERT BRUSCA, CHIEF ECONOMIST, FAO ECONOMICS, (ENGLISH) SAYING: "It's a traditional rally. I think it's earnings. You know, the earnings are doing well. Corporations are kind of surprising people in this low-economic growth climate. They've been able top put up earnings numbers." Tech and telecom led a broad-based rally. Sprint sprung higher after the wireless carrier swung to a quarterly profit for the first time in three years. Under Armour shares dropped. The sportswear maker cut its full-year sales forecast. Pfizer edged lower. The drug maker's revenue fell for the second straight quarter and missed analysts' targets. Shares of GM and Ford fell. Sales at both automakers declined in July. In economics news, declining auto production hurt factory activity, which fell in July. Construction spending in June saw its steepest drop in 15 years. And consumer spending barely rose in June. European markets zoomed higher, led by utilities and industrial stocks.