S&P 500 jumps to record high on busy earnings day
Wall Street extended its record-setting run on Tuesday, with major indexes posting gains on a heavy day of corporate earnings that included well-received reports from McDonald`s and Caterpillar.
The S&P 500 and Nasdaq hit all-time highs, although the Nasdaq`s gains were crimped by declines in Google parent Alphabet
Shares of McDonald`s
Those stocks spurred the Dow industrials, leaving the Dow close to record territory.
Data showing a jump in U.S. consumer confidence amid optimism over the labor market added to the bullish sentiment.
"It feels like people are maybe getting a little more optimistic that things are, if not improving dramatically, then at least holding pretty steady in the economy and that would be pretty good for stocks," said William Delwiche, investment strategist at Baird in Milwaukee.
The Dow Jones Industrial Average <.dji> rose 128.08 points, or 0.6 percent, to 21,641.25, the S&P 500 <.spx> gained 10.1 points, or 0.41 percent, to 2,480.01 and the Nasdaq Composite <.ixic> added 11.35 points, or 0.18 percent, to 6,422.16.
Sectors that perform better during positive economic cycles led the way, with energy <.spny>, materials <.splrcm> and financials <.spsy> all rising at least 1 percent.
Sharp gains in oil prices
Financials were boosted by a bullish profit forecast from Citigroup
The future path of interest rates will be in focus on Wednesday with the expected statement from the Federal Reserve.
Investors were also watching a U.S. Senate vote on healthcare legislation for its implications for President Donald Trump`s planned domestic agenda including tax cuts, which has helped support the stock market.
The market`s run to record highs, including a 10.8 percent rise for the S&P 500 in 2017, has left equities relatively expensive and investors counting on earnings to justify the valuations. The S&P 500 is trading around 18 times earnings estimates for the next 12 months, well above their long-term average of 15 times.
With more than one-fourth of the S&P 500 having reported results, earnings are now expected to have climbed 9.1 percent in the second quarter, up from a projection of an 8-percent rise at the start of the month, according to Thomson Reuters I/B/E/S.
Not all earnings news was positive, as 3M Co
Advancing issues outnumbered declining ones on the NYSE by a 1.77-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favored advancers.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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