After the bell this morning, indices are practically soaring!
Despite a downturn around 10:10, the Dow Jones Industrial Average has rocketed from $26,520 to nearly $26,600 – meanwhile the S&P 500 has moved up from around $2,910 to $2,920.
Both of these high points are within striking distance of all time highs over the past four decades – and both of them are dramatic upticks over a month’s time.
In practical terms, S&P 500 and DJIA are nearly the highest that they’ve ever been, and climbing.
What’s spurring this long-term market rally?
New reports by publications like Huron Daily Tribune cite good earnings numbers that “keep rolling in.”
Across the board, earning reporting from a diverse basket of companies is causing investor ebullience on the exchanges. There are retailers like Coca-Cola and Hasbro, defense contractors like a Lockheed Martin, and big conglomerates like General Electric, which, after slumping, has risen some 2% to 3% in the last five day cycle.
It seems that Easter has been kind to the U.S. markets.
“U.S. equities climbed on the back of better-than-forecast earnings, while the dollar strengthened and Treasury yields dipped,” writes Brendan Walsh at Bloomberg in a piece updated at 10:30 am. “The S&P 500 Index, trading near the highest valuation since September, extended its advance as Twitter, Coca-Cola and Hasbro climbed following favorable first-quarter reports. Banks were the worst performers in the Stoxx Europe 600 Index, which advanced as many markets reopened following the long Easter weekend. The pound weakened as U.K. Prime Minister Theresa May confronted further challenges to her leadership.”
Crude oil prices are jumping to record highs, which is propping up energy sectors.
“West Texas oil rose 0.8 percent to $66.24 a barrel,” notes Walsh in commodities coverage.
Others today cite gains in telecom.
“Shares of Verizon Communications Inc. VZ, -2.05% rallied 1.1% in premarket trade Tuesday, after the wireless, internet and TV services provider beat first-quarter profit expectations, while revenue was in line, and raised its outlook,” writes Tomi Kilore at MarketWatch earlier this morning. “Net income rose to $5.16 billion, or $1.22 a share, from $4.67 billion, or $1.11 a share, in the same period a year ago.”
For more context, let’s go to Jonathan Garber’s “10 things to know before the bell” today at Business Insider.
In “entertainment” news, we have a characteristically colorful quote from Herman Caine on turning down a job at the Fed.
“Without getting too specific about how big a pay cut this would be, let’s just say I’m pretty confident that if your boss told you to take a similar pay cut, you’d tell him where to go,” Caine said, according to reports.
Elsewhere, Garber cites global gold hoarding as a market mover:
“Gold buying by central banks hit its highest level in nearly half a century last year — here’s which have the biggest stockpiles of the yellow metal.”
Continue to watch SP500 and DJIA against gold and other contenders throughout the week, to scry out investor sentiment.
