Stocks rally for a second day as earnings season rolls on

Stocks rose for a second day Tuesday on better-than-expected earnings reports and as markets shrugged off the latest rise in US-China trade war tensions. The S&P 500 rallied nearly 1.25%, led by Netflix.

Here's the scoreboard:

Dow Jones Industrial Average: 24,786.63 +213.59 (+0.87%)

S&P 500: 2,710.95 +33.11 (1.24%)

AUD/USD: 0.7770 -0.0011 (-0.14%)

ASX 200 SPI futures: 5,841.5 +21.0 +0.36%

1. Earnings season rolls on. Goldman Sachs reported earnings that beat analyst expectations by a long shot. Netflix surged about 9% on last night's earnings report, which showed it added nearly seven and a half million subscribers in the first quarter.
2. China slapped a 179% import tax on US sorghum, a key agricultural export. The new tariff is sure to stoke existing fears of a trade war between the world's largest economies.
3. Aluminum jumped to a near seven-year high as US sanctions against Russia hit the market. Sanctioned companies include Kremlin-linked aluminum giant Rusal, which is the world's second largest producer of the metal.
4. A Southwest Airlines flight was forced to make an emergency landing in Philadelphia due to engine failure, killing at least one person in the incident. Shares of the company's stock slid more than 1%.
5. New York Attorney General Eric Schneiderman has opened an investigation into the cryptocurrency market. Schneiderman announced Tuesday he is looking into the use of bots, conflicts of interest, and more in the digital currency market.

Here's Wednesday's economic calendar:

• Morgan Stanley reports first-quarter earnings.
• Australia releases data on monthly employment and inflation.
• Bank of Canada announces interest rate decisions a policy meeting.
• The UK reports monthly inflation data.

NOW WATCH: Wall Street's biggest bull explains why trade war fears are way overblown