Gains in Tesla, Nvidia and other heavyweight technology names helped propel the benchmark S&P 500 index scale to a record high on Tuesday, while upbeat results from UPS and GE added optimism to the third-quarter earnings season.
Tesla Inc rose 1%, extending a record run that helped the electric-car maker surpass $1 trillion in market value on Monday after offloading its biggest order from rental car company Hertz.
Nvidia Corp was up 6.8% and hit an all-time high, while mega-cap growth names such as Amazon.com, Apple Inc, Google-owner Alphabet Inc and Microsoft Corp boosted the tech-heavy Nasdaq.
Ten of the 11 key S&P sectors advanced, consumer discretionary, information technology and financial reached life-time highs.
The United Parcel Service Inc. S&P 500 index rose 7.6% after the delivery firm reported better-than-expected quarterly earnings and revenue, fueled by strong e-commerce demand.
General Electric Co. rose 2.6% when the industrial conglomerate forecast its full-year earnings.
Shares of Hasbro Inc. climbed 3.7% even after the toy maker posted third-quarter profits as it warned of a hit to holiday sales from supply chain issues.
Arthur Hogan, chief market strategist at National Securities in New York, said, “Investors are prepared for the worst-case scenario and are looking at near-term positives against what lies ahead and what is helping profit at the index level. “
“The major component of the weak outlook is due to supply, not demand for companies … the belief that Corporate America will be able to navigate through a lot of supply and inflation headwinds.”
Earnings of S&P 500 companies are expected to rise 35.6% year-over-year for the third quarter, with market participants assessing how companies are navigating supply-chain constraints, labor shortages and inflationary pressures.
Some stellar quarterly reports have helped propel the Dow and the S&P 500 to record highs, lifting investor sentiment in October after concerns around inflation, the Fed’s tapering off and asset group China Evergrande’s crisis plunged markets last month. shook. The Nasdaq is trading down about 0.5% from its September 7 record high.
At 11:46 am, the Dow Jones Industrial Average hit a record high of 35,866.54, up 125.39 points, or 0.35%.
The S&P 500 was up 24.64 points, or 0.54%, at 4,591.12 and the Nasdaq Composite was up 94.73 points, or 0.62%, at 15,321.44.
Facebook Inc slipped 3.2% as the social media giant’s third-quarter revenue bore the brunt of Apple’s privacy rules, while advertisers were also hit by global supply-chain disruption and labor shortages.
Twitter Inc., which also generates revenue by selling digital ads, overtook its results on Tuesday.
It’s also eyeing quarterly updates from Alphabet Inc. and Microsoft after the market close, with a focus on renting Google’s ad revenue.
Meanwhile, data showed an unexpected jump in US consumer confidence in October as concerns about higher inflation were offset by improving labor market prospects.
The number of advance issues declined to a 1.44-to-1 ratio on the NYSE and a 1.24-to-1 ratio on the Nasdaq.
The S&P index recorded 60 new 52-week highs and no new lows, while the Nasdaq recorded 119 new highs and 44 new lows.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.