Stocks are extending their gains.

Near 2:00 pm ET on Tuesday, the Dow was up 186 points, the S&P 500 was up 31 points, and the Nasdaq was up 86 points.

On a percentage basis, all of the averages are up more than 1% with the Nasdaq pacing these gains, climbing 2%, while the S&P 500 was up 1.6% and the Dow was up 1.1%.

US stocks are taking their lead from stocks in Europe, which are surging across the board after a report from Reuters said that the ECB is considering purchasing corporate bonds on the secondary market as early as December.

Earnings season is in full swing, as last night Apple reported third quarter results that topped expectations and iPhone sales came in better than expected. In pre-market trading, Apple shares were up as much as 2%, boosting the Nasdaq.

Also on the earnings front, McDonald’s reported worse than expected sales, and shares of the fast food giant were down 0.5% in early trade on Tuesday.

Coca-Cola shares were down nearly 6% in early trading on Tuesday after the soft drink maker said in its quarterly reported that it expects its long-term earnings per share growth target.

The company also announced new plans to boost profits with a goal to generate $US3 billion in annualized savings by 2019.

The decline in Coke shares marks the third Warren Buffett holding that has struggled of late, adding to recent declines at IBM and UK grocer Tesco.

On the economic data front, existing home sales came in better than expected, growing 2.4% month-over-month, against expectations for a 1% gain.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.