U.S. equities rose sharply on
Tuesday as solid quarterly reports from several large-cap companies rolled
through. The Nasdaq composite jumped about 0.7 percent, sending the index above
6,000 for this first time ever.
"It's certainly a
psychological factor," said Jeff Carbone, managing partner of Cornerstone
Financial Partners. "It took us many years to get back above 5,000 and now
we're at 6,000. But you've got to be careful."
He noted that about 40 percent of
the index is being driven by five companies: Amazon, Facebook, Netflix,
Alphabet and Apple. "If we see a downturn in those names," the index
could be in trouble.
The Dow Jones industrial average
rose about 230 points, with Caterpillar and McDonald's contributing the most
gains and briefly broke above 21,000. The S&P 500 advanced 0.6 percent,
with materials rising more than 1 percent to lead advancers.
"I think we've come to
believe that Q1 is soft because of some reason that economists or market
analysts haven't been able to pinpoint," said Kim Forrest, senior equity
analyst at Fort Pitt Capital. "That doesn't seem to be happening
now."
Here are some of the firms that
posted quarterly results before the bell:
- Caterpillar: posted EPS of $1.28 and sales of
$9.822 billion, versus expected EPS of 62 cents and $9.271 billion
revenue forecast.
- McDonald's: posted EPS of $1.47 and revenue of
$5.68 billion, versus expected EPS of $1.33 and sales of $5.53 billion.
- 3M: posted EPS of $2.16 and revenue of $7.685
billion, versus expected EPS of $2.06 and sales of $7.472 billion.
- DuPont: posted EPS of $1.64 and sales of $7.743
billion, versus expected EPS of $1.39 and revenue of $7.504 billion.
"Earnings thus far have been
good," said Peter Cardillo, chief market economist at First Standard
Financial. "That's a good sign that Corporate America is on a renewed path
toward growth."
More than 190 S&P components
are expected to have reported by the end of the week. Other big names scheduled
to release quarterly results this week include Boeing, Amazon, Alphabet,
Microsoft and General Motors.
The major U.S. stock indexes
soared on Monday after the first round of the French presidential election went
as most investors expected. Centrist Emmanuel Macron advanced to the runoff
against far-right candidate Marine Le Pen. The runoff is scheduled for May 7.
"I have to say I was
surprised because what happened with Marine Le Pen is what we were expecting.
So why get got a bump off that is interesting," said Maris Ogg, president
at Tower Bridge Advisors. "But I think that removed a big cloud [over the
market] and people are starting to focus on the fundamentals again."
The Dow soared more than 200
points, while the S&P and Nasdaq climbed about 1 percent.
Nevertheless, investors also
zeroed in on Washington, as President Donald Trump tried to avoid a
government shutdown. Government funding will end Friday unless
Congress can agree on at least a temporary funding resolution.
The Trump administration is also
expected to release an outline to potential tax reform later this week. Tax
reform expectations have been one of the key market drivers since the
presidential election.
"Earnings and tax reform are
the main story" in the market, said Bruce Bittles, chief investment
strategist at Baird. "For two months, we were in a consolidation phase and
now we have the Nasdaq at an all-time high."
Overseas, European equities rose
broadly, with the pan-European Stoxx 600 index 0.21 percent. In Asia, stocks
closed mostly higher, with the Shanghai composite rising 0.16 percent and the
Nikkei 225 advancing 1.08 percent.
In economic news, U.S. home
prices rose more than expected in February, according to new data from the
S&P/Case-Shiller U.S. National Home Price Index.
The national home price index jumped
5.8 percent in February, while analysts were expecting home prices to climb by
5.7 percent.
New home sales rose 5.8 percent
to 621,000 in March, above expectations. Consumer confidence held at 120.3 for
April.
Symbol
| Name
| Price
| Change
| %Change
|
DJIA | Dow Industrials | 20,996.12 | 232.23 | 1.12% |
S&P 500 | S&P 500 Index | 2,388.61 | 14.46 | 0.61% |
NASDAQ | NASDAQ Composite | 6,025.49 | 41.67 | 0.70% |
The Dow Jones industrial
average rose 234 points, or 1.14 percent, to 21,000, with Caterpillar
leading advancers and Verizon the top decliner.
The S&P 500 gained
13 points, or 0.56 percent, to 2,387, with materials leading eight sectors
higher and telecommunications lagging.
The Nasdaq advanced 39
points, or 0.66 percent, to 6,023.
About three stocks advanced for
every decliner at the New York Stock Exchange, with an exchange volume of 408
million and a composite volume of 2.006 billion in afternoon trade.
The CBOE Volatility Index
(VIX), widely considered the best gauge of fear in the market, traded near
10.6.
Click here for the
original article from CNBC.
U.S. equities rose sharply on
Tuesday as solid quarterly reports from several large-cap companies rolled
through. The Nasdaq composite jumped about 0.7 percent, sending the index above
6,000 for this first time ever.
"It's certainly a
psychological factor," said Jeff Carbone, managing partner of Cornerstone
Financial Partners. "It took us many years to get back above 5,000 and now
we're at 6,000. But you've got to be careful."
He noted that about 40 percent of
the index is being driven by five companies: Amazon, Facebook, Netflix,
Alphabet and Apple. "If we see a downturn in those names," the index
could be in trouble.
The Dow Jones industrial average
rose about 230 points, with Caterpillar and McDonald's contributing the most
gains and briefly broke above 21,000. The S&P 500 advanced 0.6 percent,
with materials rising more than 1 percent to lead advancers.
"I think we've come to
believe that Q1 is soft because of some reason that economists or market
analysts haven't been able to pinpoint," said Kim Forrest, senior equity
analyst at Fort Pitt Capital. "That doesn't seem to be happening
now."
Here are some of the firms that
posted quarterly results before the bell:
- Caterpillar: posted EPS of $1.28 and sales of
$9.822 billion, versus expected EPS of 62 cents and $9.271 billion
revenue forecast.
- McDonald's: posted EPS of $1.47 and revenue of
$5.68 billion, versus expected EPS of $1.33 and sales of $5.53 billion.
- 3M: posted EPS of $2.16 and revenue of $7.685
billion, versus expected EPS of $2.06 and sales of $7.472 billion.
- DuPont: posted EPS of $1.64 and sales of $7.743
billion, versus expected EPS of $1.39 and revenue of $7.504 billion.
"Earnings thus far have been
good," said Peter Cardillo, chief market economist at First Standard
Financial. "That's a good sign that Corporate America is on a renewed path
toward growth."
More than 190 S&P components
are expected to have reported by the end of the week. Other big names scheduled
to release quarterly results this week include Boeing, Amazon, Alphabet,
Microsoft and General Motors.
The major U.S. stock indexes
soared on Monday after the first round of the French presidential election went
as most investors expected. Centrist Emmanuel Macron advanced to the runoff
against far-right candidate Marine Le Pen. The runoff is scheduled for May 7.
"I have to say I was
surprised because what happened with Marine Le Pen is what we were expecting.
So why get got a bump off that is interesting," said Maris Ogg, president
at Tower Bridge Advisors. "But I think that removed a big cloud [over the
market] and people are starting to focus on the fundamentals again."
The Dow soared more than 200
points, while the S&P and Nasdaq climbed about 1 percent.
Nevertheless, investors also
zeroed in on Washington, as President Donald Trump tried to avoid a
government shutdown. Government funding will end Friday unless
Congress can agree on at least a temporary funding resolution.
The Trump administration is also
expected to release an outline to potential tax reform later this week. Tax
reform expectations have been one of the key market drivers since the
presidential election.
"Earnings and tax reform are
the main story" in the market, said Bruce Bittles, chief investment
strategist at Baird. "For two months, we were in a consolidation phase and
now we have the Nasdaq at an all-time high."
Overseas, European equities rose
broadly, with the pan-European Stoxx 600 index 0.21 percent. In Asia, stocks
closed mostly higher, with the Shanghai composite rising 0.16 percent and the
Nikkei 225 advancing 1.08 percent.
In economic news, U.S. home
prices rose more than expected in February, according to new data from the
S&P/Case-Shiller U.S. National Home Price Index.
The national home price index jumped
5.8 percent in February, while analysts were expecting home prices to climb by
5.7 percent.
New home sales rose 5.8 percent
to 621,000 in March, above expectations. Consumer confidence held at 120.3 for
April.
Symbol
| Name
| Price
|
| Change
| %Change
|
DJIA | Dow Industrials | 20,996.12 | | 232.23 | 1.12% |
S&P 500 | S&P 500 Index | 2,388.61 | | 14.46 | 0.61% |
NASDAQ | NASDAQ Composite | 6,025.49 | | 41.67 | 0.70% |
The Dow Jones industrial
average rose 234 points, or 1.14 percent, to 21,000, with Caterpillar
leading advancers and Verizon the top decliner.
The S&P 500 gained
13 points, or 0.56 percent, to 2,387, with materials leading eight sectors
higher and telecommunications lagging.
The Nasdaq advanced 39
points, or 0.66 percent, to 6,023.
About three stocks advanced for
every decliner at the New York Stock Exchange, with an exchange volume of 408
million and a composite volume of 2.006 billion in afternoon trade.
The CBOE Volatility Index
(VIX), widely considered the best gauge of fear in the market, traded near
10.6.
Click here for the
original article from CNBC.