S&P 500 touches all-time high as earnings reports drive up stock prices
The Standard & Poor’s 500 index briefly traded at an all-time high Tuesday as the U.S. stock market’s bull run came closer to becoming the longest on record.
The benchmark index eked out a slight gain, closing a little below the record-high closing price it set in January. The rally pushed the Russell 2000 index of smaller-company stocks to a record high.
The current bull market, which began in 2009, is on track to become the longest in history Wednesday, surpassing the bull run of the 1990s.
Longest bull market in U.S. history comes with a jumbo-sized asterisk »
Tuesday’s gains were driven by strong earnings reports from home builders, retailers and other companies.
“That we got to these levels in January was a big surprise, more so than we’re back there now,” said Bob Doll, chief equity strategist at Nuveen Asset Management. “We’ve had a mildly higher market after the correction on the back of these amazing earnings.”
The S&P 500 rose 5.91 points, or 0.2%, to 2,862.96. The Dow Jones industrial average rose 63.60 points, or 0.2%, to 25,822.29. The Nasdaq composite climbed 38.17 points, or 0.5%, to 7,859.17. The Russell 2000 jumped 19.35 points, or 1.1%, to 1,718.05, beating its June 20 record.
In midday trading, the S&P 500 briefly topped its all-time closing high of 2,872 set Jan. 26. The market took a steep plunge in early February and has been mostly clawing higher since then, with some bumps along the way, thanks to a still-recovering economy and a boom in corporate profits.
Stocks have been buffeted by concerns about mounting trade tensions this spring and summer, particularly with China. Signs of potential progress have helped stocks rally in recent weeks. S&P Dow Jones Indices, which compiles the S&P 500, says that Wednesday, the current bull market will become the longest in history.
“Earnings are still going to carry the market higher, but the trade issue holds us back,” Doll said.
Investors have had much to cheer about when it comes to company earnings this year, and the second-quarter reporting period has been no exception. Of the 93% of the companies in the S&P 500 that have reported quarterly results, 62% delivered earnings and revenue that beat analysts’ forecasts, according to S&P Global Market Intelligence.
“Earnings season was phenomenal, and that removed one worry,” said Craig Birk, chief investment officer at Personal Capital. “When people are just looking at companies and just looking at economic fundamentals, they feel good about things.”
Investors cheered the latest batch of strong company earnings Tuesday.
Toll Bros. shares leaped 13.8% to $39.52 after the luxury home builder posted earnings that handily beat analyst expectations. Other home builders also got a boost. Lennar rose 4.2% to $53.26. KB Home advanced 5.4% to $25.32. PulteGroup climbed 5.5% to $29.67.
TJX climbed 4.7% to $106.46 after the operator of T.J. Maxx, Marshalls and other discount retail chains delivered quarterly results that impressed investors.
Medtronic advanced 5.7% to $95.17 after the medical technology company’s latest quarterly report card beat projections.
Discount brokers fell sharply after CNBC reported that JPMorgan Chase will offer free online trading. ETrade slid 4.4% to $58.56. Charles Schwab fell 2.4% to $50.17. TD Ameritrade slumped 7.1% to $55.88.
J.M. Smucker fell 6.6% to $108.20 after the maker of Jif peanut butter and Crisco cooking oil reported quarterly results that fell short of analyst estimates. The company also trimmed its outlook for the year.
U.S. benchmark crude rose 1.4% to $67.35 a barrel in New York. Brent crude, the standard for international oil prices, rose 0.6% to $72.63 a barrel in London.
Heating oil rose 0.5% to $2.12 a gallon. Wholesale gasoline edged up 0.1% to $2.02 a gallon. Natural gas rose 1.3% to $2.98 per 1,000 cubic feet.
Bond prices fell. The yield on the 10-year Treasury rose to 2.84% from 2.82%.
The dollar rose to 110.40 yen from 110.23 yen. The euro rose to $1.1574 from $1.1467.
Gold rose 0.5% to $1,200 an ounce. Silver rose 0.7% to $14.77 an ounce. Copper rose 0.9% to $2.71 a pound.
UPDATES:
3:35 p.m.: This article was updated with closing prices and context.
10:40 a.m.: This article was updated with market prices, context and analyst comment.
This article was originally published at 6:55 a.m.
