S&P 500, Dow close at new highs as Facebook set to start heavy earnings week

S&P 500, Dow close at new highs as Facebook set to start heavy earnings week

Article content material

NEW YORK — The Dow Industrials and S&P 500 closed at file highs on Monday, as earnings season kicked in to excessive gear in one of many heaviest reporting weeks of the quarter with bellwethers in a number of sectors poised to announce outcomes.

Whereas the Dow and S&P hit new highs, the Nasdaq outperformed on the day, buoyed by beneficial properties in Tesla and PayPal, and the tech-heavy index stands lower than 1% away from a file.

Tesla Inc jumped to its personal new excessive and breached $1 trillion in market capitalization, after automobile rental agency Hertz positioned an order for 100,000 Tesla automobiles, whereas Morgan Stanley raised its value goal on the inventory to $1,200 from $900 per share.

Commercial

Story continues beneath

Article content material

“Tesla, there’s plenty of the chatter on the market at the moment and Hertz inserting an enormous order has created some pleasure,” stated Tim Ghriskey, chief funding strategist at Inverness Counsel in New York.

Tesla, which has risen in 9 of the previous ten periods and is up greater than 28% for the month, offered the largest enhance to the S&P 500 and the Nasdaq. Additionally serving to to elevate the 2 indexes was PayPal Inc, which gained after the funds firm scrapped plans to purchase the digital pinboard web site Pinterest Inc for as a lot as $45 billion. Shares of Pinterest slumped.

Unofficially, the Dow Jones Industrial Common rose 66.76 factors, or 0.19%, to 35,743.78, the S&P 500 gained 22.02 factors, or 0.48%, to 4,566.92 and the Nasdaq Composite added 136.51 factors, or 0.9%, to fifteen,226.71.

Commercial

Story continues beneath

Article content material

U.S. President Joe Biden on Monday held out hope for an settlement on his main spending plans earlier than attending a local weather summit in Scotland, whereas the White Home stated Democratic negotiators had been closing in on a deal.

The vast majority of the 11 main S&P sectors superior, with power and client discretionary shares one of the best performing, as power names obtained a lift from one other rise in oil costs to multiyear highs on tight provide.

Shares of Fb Inc had been up forward of its quarterly outcomes due after market shut. Traders worry that like Snap Inc, the social media large’s advert income might face the brunt of Apple Inc’s privateness modifications.

Different mega-cap names scheduled to report this week embody Apple, Microsoft Corp and Google father or mother Alphabet Inc .

Commercial

Story continues beneath

Article content material

This week, 165 parts of the S&P 500 are anticipated to submit quarterly outcomes, in line with Refinitiv knowledge. Analysts count on earnings at S&P 500 corporations to develop 34.8% year-on-year for the third quarter.

Traders are additionally assessing how corporations are navigating supply-chain bottlenecks, labor shortages and inflationary pressures to maintain development. Of the 119 corporations within the S&P 500 which have reported earnings by Monday morning, 83.2% have topped analysts’ expectations.

“We’re clearly within the coronary heart of earnings season right here, and that’s plenty of what’s going on and earnings are coming in higher than anticipated and there was actual worry we might see some dangerous earnings studies due to supply-chain points and decreased outlooks, once more due to supply-chain points. Thus far, so good,” stated Ghriskey.

Shares of Kimberley-Clark declined after the Huggies diaper maker lower its 2021 revenue outlook because of larger enter price inflation.

(Reporting by Chuck Mikolajczak in New York Modifying by Arun Koyyur and Matthew Lewis)

Commercial

Story continues beneath

Feedback

Postmedia is dedicated to sustaining a full of life however civil discussion board for dialogue and encourage all readers to share their views on our articles. Feedback could take as much as an hour for moderation earlier than showing on the location. We ask you to maintain your feedback related and respectful. We now have enabled e-mail notifications—you’ll now obtain an e-mail in case you obtain a reply to your remark, there’s an replace to a remark thread you comply with or if a consumer you comply with feedback. Go to our Community Guidelines for extra data and particulars on the way to alter your email settings.

Leave a Reply

Your email address will not be published. Required fields are marked *

13 − 7 =