US: S&P 500 hits fresh record to open big earnings week

[NEW YORK] Wall Street stocks finished mostly higher on Monday following a quiet session ahead of earnings reports later in the week from General Motors, Google parent Alphabet and other influential companies.

While equities drifted downwards towards the end of the session, the broad-based S&P 500 mustered a 0.1 per cent gain to 6,305.60, a fresh record.

The tech-rich Nasdaq Composite Index also ended at a record, winning 0.4 per cent to 20,974.17, while the Dow Jones Industrial Average dipped less than 0.1 per cent to 44,323.07.

“There is obviously momentum here,” said FHN Financial Chris Low, who cited an improving US economic outlook after forecasters earlier in the year had warned of recession.

But Low said upcoming earnings conference calls with tech giants will be important, because the sector is potentially in the “crosshairs” of tariff negotiations.

US President Donald Trump has threatened to impose a series of significant tariff hikes on Aug 1 if there are no deals with major trading partners.

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Among individual companies, Verizo jumped 4.1 per cent after reporting better than expected earnings. Analysts cited a 5.2 per cent rise in revenues as meaningful given the company’s sales trends in recent times.

Alaska Air Group fell 1.0 per cent after an IT outage prompted a three-hour ground stop that disrupted operations at the carrier and at affiliate Horizon Air. Alaska said it was working to restore normal service.