NEW YORK: The S&P 500 hit a record high close for a second straight session on Monday (Jan 22) as tech stocks added to recent gains and investors awaited upcoming corporate reports for clues on this year’s profit outlook.
The benchmark confirmed a bull market on Friday after posting a record high close for the first time in two years.
The Dow Jones Industrial Average rose 138.01 points, or 0.36%, to 38,001.81, the S&P 500 gained 10.62 points, or 0.22%, to 4,850.43 and the Nasdaq Composite added 49.32 points, or 0.32%, to 15,360.29.
Netflix, Tesla, Abbott Laboratories, Intel and Johnson & Johnson, are due to report this week.
Several top tech-related heavyweights, including Microsoft and Apple, are expected to report results next week.
“The earnings and guidance are going to be crucial to continue underpin the mega tech force in the market,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
An index of semiconductors edged up and hit a fresh all-time high, while Nvidia also hit a fresh record.
Investors also await reports this week on the personal consumption expenditure (PCE) index, S&P Global PMI readings and an advance fourth-quarter gross domestic product print for possible clues on the US central bank’s next policy decision.
“It does make sense that the equity market is pretty confident here, just given the strength that we’ve seen so far in the first few weeks of the year on the back of the consumer,” said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management Company.
Traders have scaled back their expectations of an at least 25-basis-point rate cut first arriving in March, with focus now more on May, with a 53% chance, according to the CME Group’s FedWatch Tool.
Among the day’s decliners, Archer-Daniels-Midland shares dropped after placing its CFO on administrative leave for an investigation and cutting its full-year profit forecast. – Reuters
