S&P, Dow rise as Alphabet results boost earnings optimism
The S&P 500 and Dow Industrials rose on Tuesday as Alphabet`s blowout results bolstered expectations of a robust earnings season, though a decline in the Nasdaq pointed to lingering concerns over trade tensions.
Earlier in the session, the benchmark S&P 500 index touched its highest level since Feb. 1.
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Google`s parent company was the biggest boost to the S&P 500. Others in the so-called FANG group of momentum stocks rose as well. Shares of Facebook Inc
"Today, it`s an earnings story, pure and simple," said Jim Awad, senior managing director at Hartland & Co in New York. "It`s been a very good second quarter."
The Dow Jones Industrial Average <.dji> rose 162.36 points, or 0.65 percent, to 25,206.65, while the S&P 500 <.spx> gained 9.65 points, or 0.34 percent, to 2,816.63.
The Nasdaq Composite <.ixic> dropped 6.70 points, or 0.09 percent, to 7,835.17. It reversed course after having hit a record high earlier in the session.
So far in 2018, the Nasdaq has climbed more than 13 percent, more than twice the year-to-date percentage gain of the S&P 500. Some investors said the Nasdaq`s reversal indicated some profit-taking driven by lingering concerns over trade issues. Earlier on Tuesday, U.S. President Donald Trump extolled tariffs in a post on Twitter.
"It leads me to believe that underneath it all, investors are worried about the tariff situation and what the implications are going to be for corporate profits in the third quarter," Awad said. "If you`re looking to raise cash because you`re uncertain, you take it where you have the biggest profits."
Agriculture-related stocks gained on news that the Trump administration plans to announce aid for U.S. farmers to help protect them from potential impacts related to trade spats between the United States and its trade partners.
Deere & Co
Shares of Biogen Inc
Declining issues outnumbered advancing ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 2.01-to-1 ratio favoured decliners.
The S&P 500 posted 32 new 52-week highs and four new lows; the Nasdaq Composite recorded 115 new highs and 58 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)