US: Dow, S&P 500 log fresh records ahead of earnings reports
WALL Street stocks advanced on Monday with the Dow at a new high and the S&P 500 adding to last week’s record close, as investors await earnings reports for hints on major companies’ outlooks.
Among businesses reporting financial results this week are United Airlines after the closing bell on Monday, and other prominent names like Procter & Gamble, Tesla and Netflix.
“We have a lot of earnings beginning tomorrow, and so enthusiasm is building,” said Peter Cardillo of Spartan Capital.
The Dow Jones Industrial Average rose 0.4 per cent to 38,001.81, trading above the 38,000 mark for the first time.
The broad-based S&P 500 added 0.2 per cent to 4,850.43, while the tech-heavy Nasdaq Composite Index gained 0.3 per cent to 15,360.29.
“The market is extending last week’s rally. It’s going to be a very important week,” Cardillo added.
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He was referring to the government’s release of two key indicators: US gross domestic product figures, and a gauge of inflation that the Federal Reserve focuses on.
Meanwhile, recent economic data supports the case that the US economy is on the path to a soft landing, “and the market is responding to that,” he said.
Among individual companies, shares of US department store Macy’s jumped 3.5 per cent after it rejected a US$5.8 billion takeover offer.
United Airlines was nearly 1.0 per cent down before it released its results, but rose 5.8 per cent in after hours trading. AFP
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