Traders work at the Citadel Securities post on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 18, 2016. REUTERS/Brendan McDermid
NEW YORK: Wall Street gained on Monday, with the Dow and the S&P 500 near record highs, as Bank of America’s better-than-expected profit boosted optimism about US corporate reports.
Bank of America’s report continued the momentum for US banks kicked off by JPMorgan last week. The bank’s shares rose 1.6% to US$13.87, helping the S&P financial index gain 0.3%.
“We’re now on to the next shiny new object and that’s earnings season,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
“As long as companies beat earnings estimates, investors will feel comfortable buying stocks.”
Second-quarter earnings of S&P 500 companies are likely to fall 4.5%, compared with the 5% drop in the first quarter, with more of them expected to beat analysts’ estimates, according to Thomson Reuters data.
At 10:53am ET (1453 GMT), the Dow Jones Industrial Average was up 28.35 points, or 0.15%, at 18,544.9 - 12 points away from its all-time intraday high.
The S&P 500 was up 4.73 points, or 0.22%, at 2,166.47, just two points off its record intraday high.
The Nasdaq Composite was up 27.03 points, or 0.54%, at 5,056.62.
Five of the 10 major S&P indexes were higher.
Technology stocks were up 0.8%, leading the gainers, ahead of reports from IBM, Yahoo and Netflix after the close.
British chip designer ARM’s US-listed shares surged 42.4% to US$67.03, after Japan’s SoftBank agreed to buy the company for US$32.2bil.
The energy sector were down 0.5%. Oil prices fell more than 2% as traders did not expect the failed coup attempt in Turkey to affect supply.
Hasbro’s 6.3% drop led the decliners on the S&P on concerns of slowing growth in the toymaker’s biggest business, which makes toys for boys. Rival Mattel was down nearly 1%.
Advancing issues outnumbered decliners on the NYSE by 1,752 to 1,069. On the Nasdaq, 1,599 issues rose and 1,032 fell.
The S&P 500 index showed 19 new 52-week highs and no new lows, while the Nasdaq recorded 89 new highs and 12 new lows. - Reuters
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
