By Ryan Vlastelica

Oracle shares fall after results

U.S. stocks rose in a broad advance on Tuesday, as investors once again looked past escalating trade tensions to instead focus on an economy that remains strong by many measures.

The day's gains were broad-based, with seven of the 11 primary S&P 500 sectors higher on the day. Leading the advance was energy, which rose 1.1% alongside a rally in crude oil. Tech stocks, along with the industrials and consumer-discretionary sectors, all rose 0.6%.

Where are the major benchmarks trading?

The Dow Jones Industrial Average rose 81 points, or 0.3%, to 26,142. The S&P 500 advanced 10 points, or 0.4%, to 2,899. The Nasdaq Composite Index climbed 47 points to 7,942, a rise of 0.6%.

Stocks declined Monday, marking the biggest one-day drop for the S&P since mid-August and the worst session for the Nasdaq since late July.

Should the S&P end in positive territory, that would make for its sixth advance of the past seven sessions.

What's driving trading?

The threat of a trade war continues to be the primary factor moving stocks on a day-to-day basis. Late Monday, President Donald Trump late Monday said he would impose new tariffs (http://www.marketwatch.com/story/trump-to-impose-another-200-billion-in-tariffs-on-chinese-goods-2018-09-17) on about $200 billion in Chinese goods. He also threatened to add hundreds of billions more as part of his campaign to pressure Beijing to change its commercial practices.

The developments were the latest sign of growing tensions between the U.S. and its major trading partners, and expectations for the tariff announcement spurred the afternoon selloff in stocks. Technology stocks were particularly weakened, as the sector has heavy overseas revenue exposure, and as China is a crucial component to supply chains.

According to analysts at JPMorgan Chase & Co., the threat of a trade war is the biggest risk facing U.S. stocks (http://www.marketwatch.com/story/trade-war-risks-ramp-up-for-stocks-as-companies-start-curtailing-investment-2018-09-13) and could become a major drag on earnings in 2019.

Read:Trade war's 'nuclear option' could be bad for Apple, Amazon: strategist (http://www.marketwatch.com/story/trade-wars-nuclear-option-could-be-bad-for-apple-amazon-strategist-2018-09-18)

Trade issues have been a headline risk for months, and while it has increased day-to-day volatility, the broad indexes have largely ground higher, supported by strong growth in corporate earnings and improving economic data. The S&P is about 0.6% below record levels, while the Dow is 1.8% below its own and the Nasdaq, which has a heavier exposure to tech stocks, is 2.4% below its own.

Recent trading has largely been muted, with subdued trading and small intraday moves. The S&P 500 hasn't closed with a 1% swing in either direction in nearly three months, an atypically long length of relative calm.

In Europe, European Central Bank President Mario Draghi urged eurozone governments to take further action (http://www.marketwatch.com/story/ecbs-draghi-do-more-to-shore-up-banking-sector-2018-09-18) to shore up the region's banking sector, including by creating a common insurance plan for bank deposits.

What are market analysts saying?

"Though this was a move anticipated by many analysts, the [tariff] announcement will nevertheless disappoint investors who were hoping for a thaw in trade tensions," said Mihir Kapadia, chief executive officer of Sun Global Investments. "It remains to be seen how China will retaliate, but despite the muted response of global stock markets this morning, investors might be bracing themselves for further trade conflict fueled volatility in the markets."

What stocks are in focus?

Shares of Oracle Corp. (ORCL) fell 1.7% a day after the software company reported quarterly revenue that missed expectations (http://www.marketwatch.com/story/oracle-earnings-show-another-cloud-miss-stock-falls-2018-09-17), hurt by weaker-than-expected cloud-services sales.

Visa Inc.(V) and Mastercard Inc.(MA)agreed to settle a class-action lawsuit (http://www.marketwatch.com/story/visa-mastercard-settle-us-retailers-class-action-suit-2018-09-18) brought by U.S. retailers in 2005 for a proposed settlement amount of $6.2 billion. Shares of Visa rose 0.6% while Mastercard rose 1.3%.

General Mills Inc.(GIS) reported adjusted first-quarter earnings that beat expectations (http://www.marketwatch.com/story/general-mills-tops-profit-estimate-as-sales-fall-slightly-short-2018-09-18), though revenue came in below forecasts. The stock tumbled 5.1%.

AutoZone Inc. (AZO) reported adjusted fourth-quarter earnings that beat expectations, though revenue came in below forecasts. Same-store sales also grew less than had been expected (http://www.marketwatch.com/story/autozones-stock-sinks-after-profit-beats-but-sales-miss-2018-09-18). The stock fell 2.5%.

Red Hat Inc.(RHT) shares fell 1.7% after it was downgraded to neutral by JPMorgan analysts.

The stock of Viking Therapeutics Inc. (VKTX) more than doubled, jumping by as much as 110% after it reported positive results (http://www.marketwatch.com/story/viking-therapeutics-announces-positive-results-in-trial-of-non-alcoholic-fatty-liver-treatment-2018-09-18) in a midstage trial of a treatment for nonalcoholic fatty liver disease.

What are other markets doing?

Asian stocks rallied as investors shrugged off the latest news on tariffs (http://www.marketwatch.com/story/asian-markets-mostly-shrug-off-latest-us-tariffs-targeting-china-2018-09-17). However, the region has struggled lately, and recently traded at four-year lows. Major European indexes were modestly higher.

Crude-oil prices rose sharply, while gold was down 0.1%. The U.S. dollar index was 0.1% higher.

(END) Dow Jones Newswires

September 18, 2018 09:48 ET (13:48 GMT)