US stocks advanced, with the Standard & Poor’s 500 Index rising to a record, as statistics showed inflation hasn’t attained a footing and investors weighed corporate earnings reports.
Chipotle Mexican Grill Inc. added 12% after the earnings and sales it announced surpassed projections. Comcast soared 1.8% after reporting profits that beat estimates buoyed by higher revenue from online customers. McDonald’s Corp. dropped 1.4% after its profit was lower than analysts’ predictions. Travelers plunged 4.1% as earnings declined 26%.
The S&P 500 hit 1,984.49 at 1:59 pm after rising 0.6% in New York and ascended as high as 1,986.24. The Dow Jones Industrial Average soared 65.58 points or 0.4% to 17,120.31. Volume of S&P 500 shares traded was 3.8% higher than the average for the past 30 days at the time of the day.
About 36 firms listed on the S&P 500 are expected to publish earnings on Tuesday. The companies include Coca Cola, Apple Inc. and Microsoft Inc. Profits for almost 76% of S&P 500 firms that have reported their latest quarter results have topped analysts’ projections.
Strategist Terry Sandven of US Bank Wealth Management said that stock markets seemed on course to surge higher.
“We think there is still some modest upside if you continue to see earnings rise. The inflation numbers are supportive of higher stock prices. It reflects U.S. economic growth that is neither too slow nor too fast,” Sandven is quoted by Bloomberg as saying.
Statistics showed that the consumer price index added 0.3% in June, accelerated by a hike in gasoline, which is now retreating, supporting Federal Reserve Chair Janet Yellen’s position that recent increases were short-lived.
Investors have been assessing inflation data to predict when the Fed will begin hiking its core interest rate.
According to MarketWatch, sales of existing homes soared for a third month in June to the highest yearly rate since October.
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To contact the reporter of this story; Yashu Gola at email@example.com