US markets cruised to a winning session as investors pounced on a heavy hitting day of earnings season.
The S&P 500 hit its highest-ever close, lifted by strong earnings reports from companies across various industries.
Twitter and Hasbro headlined the index after a swirl of companies posting results before the opening bell, each jumping double digits on positive first quarter results.
So far, 78% of S&P 500 companies that have reported earnings beat their expectations, according to data from FactSet. By the end of the week, 140 S&P 500 companies will have released results, per CNBC.
The industrials gained almost 150 points, led by Coca-Cola, Johnson & Johnson and others, but ran into resistance just below 26,700 around midday.
Meanwhile, housing indicators offered traders encouraging signs. Home prices grew 0.3% in February, slightly slower than expected, according to the FHFA House Price Index. New home sales jumped to 692,000 in March from 667,000 in February, beating the consensus estimate of 645,000.
The Dow was up 0.6% to close at 26,656.4. The Nasdaq increased 1.3% to end the day at 8,120.8, and the S&P 500 finished nearly 1% ahead at 2,933.7 – topping its previous record close of 2,929.7 on September 17.
At the small-cap level, the Russell 2000 jumped 1.6% to 1,584.9, and the S&P SmallCap 600 Index moved 1.5% ahead to settle at 971.6.
1:10 pm: US markets race toward a potentially record-setting day on the wind of robust earnings reports
Stocks were full steam ahead Tuesday afternoon as the S&P 500 was on pace for a record-high close.
Twitter and Hasbro led the index after a whirlwind morning of earnings reports, each jumping double digits on strong first quarter results. After this week’s barrage of quarterly reports,140 S&P 500 companies will have released results, per CNBC.
The industrials were also flirting with a record high, up more than 160 points, after jumps from Coca-Cola, Johnson & Johnson and others.
Meanwhile, housing indicators offered encouraging signs. Home prices grew 0.3% in February, slightly slower than expected, according to the FHFA House Price Index. New home sales jumped to 692,000 in March from 667,000 in February, beating the consensus estimate of 645,000.
The Dow grew 0.6% to 26,677.7. The Nasdaq increased 1.2% to 8,115, and the S&P 500 gained nearly 1% to 2,933.9.
At the small-cap level, the Russell 2000 jumped 1.7% to 1,586.4, and the S&P Smallcap 600 moved 1.6% ahead to 972.7.
In Europe, the London FTSE closed up nearly 1% at 7,523.1, the French CAC advanced 0.2% to 5,591.7 and the German DAX ticked up 0.1% to 12,235.5.
10:10 am: Wall Street starts on the right foot as earnings season rages on
US markets opened in the green Tuesday after a wave of earnings reports before the bell.
Coca-Cola and United Technologies each helped propel the industrials, while Verizon and Procter & Gamble shifted their weight in the opposite direction.
Twitter and Hasbro were two of the biggest beneficiaries during the busiest week of earnings season, each jumping double digits on strong first quarter results. After this week’s barrage of reports,140 S&P 500 companies will have released results, per CNBC.
Meanwhile, housing indicators offered encouraging signs. Home prices grew 0.3% in February, slightly slower than expected, according to the FHFA House Price Index. New home sales jumped to 692,000 in March from 667,000 in February, beating the consensus estimate of 645,000.
The Dow grew 0.1%, 28 points, to 26,538.8. The Nasdaq increased 0.5% to 8,056.6, and the S&P 500 gained 7 points to 2,915.3.
At the small-cap level, the Russell 2000 advanced 5 points to 1,565.5, and the S&P Smallcap 600 ticked up 1 point to 958.2.
In Europe, the London FTSE was having a strong day, up 0.7% to 7,512.1. The French CAC slipped 8 points to 5,572.6, and the German DAX gave back 11 points to 12,211.4.
7:32 am: Wall Street set for mixed start and a slew of earnings Tuesday
US stocks are poised to start lower after what was a mixed closed Monday after the long weekend.
Yesterday, on Wall Street, traders couldn't decide which way to turn, with declines from sportswear giant Nike (NYSE:NKE) and plane maker Boeing (NYSE:BA.) keeping a lid on gains.
The Dow Jones Industrial Average closed down over 48 points at 26,511; the Nasdaq finished ahead by around 17 and the S&P 500 added nearly three points at 2,907.
In futures trade today, the Dow is up just a point; the Nasdaq is down nearly nine and the S&P 500 index is down around two points.
In the oil market, prices are up again as President Donald Trump's administration has pledged again to firm up its crackdown on exports from Iran following sanctions. Some countries are still buying crude from the OPEC nation due to waivers. US crude is up 2.59% to $65.66 a barrel.
Wall Street may be too pessimistic heading into a crucial earnings season, Hennion & Walsh Chief Investment Officer Kevin Mahn tells Reuters pic.twitter.com/0DDl92iqAX
— Reuters Top News (@Reuters) 23 April 2019
Traders in the US are also bracing themselves for another slew of earnings, with Coca-Cola (NYSE:KO), Harley-Davidson (NYSEL HOG) and toy maker Hasbro (NYSE:HAS) among those reporting before the bell.
In Europe, equities are mixed at the time of writing, with the FTSE 100 up around 23 points at 7,483. The German DAX and the French CAC 40 were also seeing red.
"Most equity markets have opened after the long holiday weekend with mixed results," said Dean Popplewell, market analyst at Forex group Oanda.
"European stocks have started under pressure, while U.S futures trade rangebound and Asian equities recorded a mixed showing in the overnight session as the U.S earnings season reporting begins to intensify," he added.
From April 29, there are a number of Japanese holidays in 'Golden Week' and trading volumes are lower there at the moment.
The Nikkei 225 index added nearly 42 points at 22,259; the Shanghai Composite Index shed around 16 at 3,198.