* Netflix and Coach soar after results top forecasts
* China data disappoints, shows little growth in
* DuPont and Travelers raise quarterly dividends
* Indexes up: Dow 0.8 pct, S&P 0.8 pct, Nasdaq 0.9 pct
By Ryan Vlastelica
NEW YORK, April 23 (Reuters) - U.S. stocks rose on Tuesday
as strong earnings from Travelers Cos Inc and others put
shares on track for a third straight day of gains, although
investors said recent volatility was likely to return.
Gains were driven by corporate earnings, with Netflix Inc
and Coach Inc the S&P 500's top two percentage
gainers. Netflix soared 23 percent to $214.37 while Coach was up
11 percent at $56.09. Both companies posted profits that beat
expectations and Netflix also posted strong subscriber growth.
Equities have steadily advanced in 2013, leading many
analysts to call for a correction, although major indexes have
rebounded off declines. Still, data pointing to economic
weakness in the United States and China have raised questions
about whether the rally will continue.
U.S. new home sales rose 1.5 percent in March, slighly under
expectations, according to the Commerce Department. Equities
showed little reaction to the data.
In China, data showing little growth in factory activity was
the latest indicator that global growth may come under pressure.
Last week data showing China's growth unexpectedly slowed in the
first quarter contributed to a massive drop in commodity prices.
Crude oil fell 1 percent.
"There are real concerns as we've seen material names sell
off so sharply. The interpretation of risk is pretty dramatic
and not necessarily evidenced by where the averages are," said
Jeff Morris, head of U.S. equities at Standard Life Investments
"Still, cyclical shares have been doing well in earnings,
with financials the leaders in upside surprises and industrials
The Dow Jones industrial average was up 119.32
points, or 0.82 percent, at 14,686.49. The Standard & Poor's 500
Index was up 12.29 points, or 0.79 percent, at 1,574.79.
The Nasdaq Composite Index was up 30.32 points, or 0.94
percent, at 3,263.87.
In other earnings reports, Travelers Cos Inc led the
Dow higher, jumping 3.4 percent to a new all-time high as
earnings surged past expectations. The insurer also raised its
Texas Instruments Inc jumped 2.2 percent to $35.57
after it said improving demand for its chips would lead to
growth in the current quarter, while DuPont's adjusted
earnings beat expectations. It also raised its dividend, sending
shares up 1.6 percent to $51.31.
The CBOE Volatility index, a measure of investor
anxiety, fell 6.3 percent on Tuesday but is coming off a jump of
24 percent last week.
"Equity gains have been getting progressively smaller, so it
doesn't really feel like a robust rotation into the market at
this stage," said Morris, who helps oversee $272 billion in
Earnings season has been largely positive, with more than 67
percent of S&P 500 companies that have reported beating
expectations, according to Thomson Reuters data. Still, there
have been a number of high-profile disappointments, including
from IBM and General Electric Co.
Analysts see earnings growth of 2.1 percent this quarter, up
from expectations of 1.5 percent at the start of the month.
Apple Inc edged 0.2 percent higher to $399.80 in
early trading. The stock, which is one of the largest U.S.
companies by market capitalization, is expected to report
results after the market closes.