S&P 500, Nasdaq closed high on strong US earnings reports

The S&P 500 index and the Nasdaq reached record closing highs after better than expected earnings reports eased economic slowdown concerns.

Nasdaq Source: Bloomberg

The benchmark index closed at new highs on Tuesday, just 0.3% below its intra-day record of 2,940.91.

The S&P rose 17% this year, boosted by a dovish Fed Reserve and hopes of a US-China trade resolution.

Analysts predict more earnings reports later in the week could continue to push the index above its record highs.

The Dow Jones Industrial Average rose 145.34 points, or 0.55%, to 26,656.39, the S&P 500 gained 25.71 points, or 0.88%, to 2,933.68 and the Nasdaq Composite added 105.56 points, or 1.32%, to 8,120.82.

ASX200

IG market analyst says that the ASX 200 will follow on from Wall street’s gains.

‘In light of Wall Street’s quick-sip of euphoria, SPI Futures are suggesting that the ASX 200 will back up yesterday’s strong showing and add around 20 points at today’s open.’ Mr. Rodda said.

It comes after the ASX demonstrated signs of robustness during Tuesday’s session, with breadth solid at 76%, every sector in the green, and the major energy, mining and financials stocks all adding substantially to the index.

The ASX 200 was pushed beyond the 6300 level, recording highs not seen since September 2018.

Better than expected earnings

Ten of the 11 major S&P sectors were higher, with a rebound in healthcare, which gained 1.6%, while the consumer staples sector was the only S&P sector that ended the day lower as investors favoured riskier bets.

Twitter Inc Inc shares soared 15.6% after the social media company posted better-than-expected quarterly revenue, while Hasbro Inc rose 14.2% after it reported a surprise strong quarterly profit.

Coca-Cola rose 1.7% after its quarterly sales beat estimates, helped in part by strong demand for Coke Zero.


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