The Dow added four-tenths of a percent, the S&P 500 gained eight-tenths and the Nasdaq climbed roughly one percent.

More than 80% of S&P 500 companies that have reported earnings so far have beaten profit expectations, LSEG data showed.

But it's the forward guidance that's been particularly encouraging, says Brian Mulberry, client portfolio manager at Zacks Investment Management.

"It is starting to kind of separate a little bit of the quality companies versus some that might not be in such a good position. And really for us, that's going to be those companies that have low debt levels, good organic growth metrics, better margins at the end of the day. We're starting to see those companies, combined with better forward guidance, get better treatment in terms of price appreciation in this moment."

Shares of Walt Disney, flat at the close, climbed in after-hours trading after the company handily beat Wall Street's expectations, lifted by record results at its theme parks and continued cost-cutting efforts. The entertainment giant also announced a $1.5 billion stake in Fortnite-maker Epic Games.

Shares of Arm Holdings, which finished up 5.5%, skyrocketed after the closing bell when the British tech company forecast quarterly sales and adjusted profit above Wall Street expectations as its customers aim to design new chips for artificial intelligence.

Shares of Chipotle gained more than 7% after the Mexican chain restaurant topped analyst estimates for quarterly profit and sales on strong demand for its burritos and rice bowls.

And Ford shares rose 6% as the automaker increased its first-quarter dividend and scaled back investments in loss-making electric vehicles.