Wall Street: Investor optimism on the back of strong corporate earnings boosted the New York Stock Exchange on Tuesday. The Dow Jones and the S&P 500 reached record highs.
In early trading, the Dow Jones Industrial Average gained 88.56 points, or 0.25 percent, to 35,829.71 after rising to 35,865.53.
As well, the Standard & Poor’s 500 index is up 0.54 percent to 4,591.12 points, also trading at a high level.
The Nasdaq Composite rose 0.73 percent, or 111.08 points, to 15,337.786.
According to Robert Pavlik, portfolio manager at Dakota Wealth, “inflation and supply chain issues do not appear to be issues in the near term as the markets are focusing on quarterly results.”
Refinitiv IBES predicts that S&P 500 corporate earnings will increase 34.8% from the prior year.
While the White House said the Democratic negotiators were closing in on a deal on major spending plans, President Biden held out hope of an agreement before attending a climate summit in Scotland.
On a day where oil prices rose to multiyear highs on tight supply, the majority of the 11 major S&P sectors gained. Furthermore, energy and consumer discretionary stocks were the best performers.
Other Wall Street values.
On the other hand, Facebook shares are wavering in early trading, after the company has announced a $50 billion share repurchase program, offset by lower-than-expected fourth-quarter revenue and a downward revision to its forecast.
Thanks to a surge in Internet shopping, UPS posted better-than-expected results and rose 7.64%.
3M, however, is shedding 1.16% after lowering its annual profit outlook due to supply disruptions. General Electric loses 3.38% after raising its 2021 profit target.
Twitter, Microsoft, and Alphabet, which will report quarterly results after the close, are all up 0.33 to 1.68 percent.
With results excluded, betting group Draftkings has gained 4.76% after canceling plans to purchase British company Entain.