NEW YORK, NY - FEBRUARY 06: People walk by the New York Stock Exchange (NYSE) on February 6, 2017 in New York City. As President Donald Trump made moves to scale back regulations on the financial industry, the Dow Jones industrial average rose over 180 points last Friday but opened down slightly Monday morning. Spencer Platt/Getty Images/AFP == FOR NEWSPAPERS, INTERNET, TELCOS & TELEVISION USE ONLY ==
NEW YORK: The Dow Jones Industrial Average and the Nasdaq Composite hit record levels at the open on Tuesday, while the S&P 500 was less than five points away from hitting another all-time high.
Investors are assessing corporate earnings to see if stock valuations are justified after a post-election rally drove US equities to record highs.
Fourth-quarter earnings are estimated to have risen 8.1% - the best in nine quarters.
“We’re a stone’s throw away from all-time highs and the market has been sitting in a relatively tight range, looking for a fresh theme to commit capital,” said Andre Bakhos, managing director at Janlyn Capital in Bernardsville, New Jersey.
While Trump has promised tax cuts and higher infrastructure spending, the lack of detail and his isolationist stance have kept investors cautious. The S&P 500 index has not moved more than 1% in either direction since Dec 7.
The Dow Jones Industrial Average and the Nasdaq Composite closed little changed on Monday, while the S&P fell slightly as losses in energy companies weighed.
A report from the US Commerce Department showed trade deficit fell more than expected in December as exports rose to their highest level in more than 1½ years, outpacing an increase in imports.
At 9:38am ET (1437 GMT) the Dow Jones Industrial Average was up 65.43 points, or 0.33%, at 20,117.85.
The S&P 500 was up 4.15 points, or 0.18%, at 2,296.71 and the Nasdaq Composite was up 11.81 points, or 0.21%, at 5,675.37.
Eight of the 11 major S&P sectors were higher, with industrials’ 0.41% rise leading the advancers.
Shares of Michael Kors dropped 12.8% to US$36.02 after the handbag maker reported disappointing third quarter sales and cut its full-year revenue forecast.
Health insurer Centene was up 4.3% at US$66.29 following better-than-expected quarterly revenue and profit.
General Motors slipped 3.3% to US$35.68 after the automaker said fourth-quarter net income fell partly because of US$500mil in foreign exchange losses.
Twenty-First Century Fox fell 1.3% to US$30.67 after its quarterly revenue missed Wall Street expectations.
Advancing issues outnumbered decliners on the NYSE by 1,454 to 1,078. On the Nasdaq, 1,255 issues rose and 963 fell.
The S&P 500 index showed 18 new 52-week highs and one new low, while the Nasdaq recorded 44 new highs and 11 new lows. - Reuters
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