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The move by the major American stock market indices including the S&P 500 to hit their new ATHs may be fast-tracked by increased earnings reports from the companies that are going to unveil their results for the previous quarter.
Amid a strong third-quarter earnings report by the majority of firms on Wall Street, the S&P 500 (INDEXSP: .INX) has extended its growth runs, climbing by an additional 0.74% to 4,519.63 as it nears its ATH. The positive growth trend has also extended to other market indices including the Dow Jones Industrial Average (INDEXDJX: .DJI) and the Nasdaq Composite (INDEXNASDAQ: .IXIC). While the Dow topped its growth by 0.56% to 35,457.31, the Nasdaq Composite soared to 15,129.09, atop a 0.71% surge.
The positive outlook of the stock market which is being fueled by the better-than-expected earnings report is going a long way to ease concerns about the dragged-out impact of the rising covid-19 cases and its economic impacts. The current growth of the major market indices has effectively pushed both the Dow Jones, and the S&P 500 close to 1% of their all-time highs (ATH).
FAANG stock had a mixed reaction to the market on Tuesday with the duo of Facebook Inc (NASDAQ: FB), and Apple Inc (NASDAQ: AAPL) leading the surge by 1.39% and 1.51% growth push respectively. E-commerce giant Amazon.com Inc (NASDAQ: AMZN) closed 0.075% lower atop a $3,444.15 share price. Netflix Inc (NASDAQ: NFLX) closed 0.16% higher to $639 per share after the movie production and streaming company said it increased its number of subscribers following the release of its highest-grossing movie of all time, the Korean violent hit series, Squid Game.
Alphabet Inc (NASDAQ: GOOGL) also closed Tuesday’s trading on a positive note, topping its growth by 0.32% to $2,864.74 per share. Though Procter & Gamble Co (NYSE: PG) reported a good earnings report, its shares dropped by 1.18% to $140.66, as the company said it is going to increase the cost of its products in order to cushion rising commodity and freight costs, per a CNBC report.
S&P 500 Move to ATH, a Feat to Be Boosted by Additional Earnings Beat
The move by the major American stock market indices including the S&P 500 to hit their new ATHs may be fast-tracked by increased earnings reports from the other companies yet to unveil their performances in the previous quarter.
“The financials got earnings season off to another strong start, but let’s be honest, COVID and supply chain issues aren’t going to impact this group. Now it gets very interesting to see what other industries will have to say about the health of the economic recovery,” said Ryan Detrick, chief market strategist at LPL Financial.
Major American pharmaceutical firms particularly those with a COVID-19 vaccine are big contributors to the overall market outlook. Johnson & Johnson (NYSE: JNJ) also beat third-quarter earnings expectations by 25 cents per share. The New Brunswick-based healthcare stock rallied 2.34% to $163.87.