Dow, S&P 500, Nasdaq close at records levels

NEW YORK (AFP) – Wall Street stocks finished at fresh records Monday following strong economic data and in anticipation of another strong quarter of corporate earnings reports.

All three major indices ended at all-time highs, with the Dow Jones Industrial Average jumping 0.7 percent to 22,557.60.

The broad-based S&P 500 rose 0.4 percent to 2,529.12, while the tech-rich Nasdaq Composite Index gained 0.3 percent to 6,516.72.

US manufacturing activity rose to its highest level in September in 13 years, according to data from the Institute for Supply Management. The report showed strength across virtually every manufacturing segment, although some companies expressed fears that US hurricanes could lead to higher supply costs.

Analysts were also bullish about third-quarter earnings season, which kicks off in earnest in about 10 days. Companies in the S&P 500 are projected to report a five percent year-over-year gain in operating earnings-per-share (EPS), according to CFRA Research.

''The recovery from the 2015-16 EPS recession continues,'' said CFRA. ''History implies that the final tally will likely be even better than 5.0%.''

Analysts said sentiment was not affected by a brutal mass shooting at a Las Vegas hotel that resulted in at least 58 fatalities. However, MGM Resorts, which owns the hotel, fell 5.6 percent.

Banks were big gainers, with JPMorgan Chase, Bank of America and Goldman Sachs all winning more than one percent.

Health care stocks were also strong, as Pfizer advanced 1.1 percent, Gilead Sciences 3.1 percent and Johnson & Johnson 0.9 percent.