Nasdaq hits high as stocks edge up
U.S. stock indexes fluttered up and down Thursday, then ended a hair above where they started. The slight gains were enough to nudge the Nasdaq composite to another record close and the Standard & Poor’s 500 index to within a whisper of its all-time high.
Gains by Under Armour, Comcast and other firms reporting stronger-than-expected profits Thursday helped offset a slump in energy stocks. The encouraging reports added to the parade of companies saying they earned more in the first quarter of 2017 than Wall Street forecast. Analysts expect this to be the strongest quarter of growth in years.
The reports have helped lift stocks and at least slightly temper concerns that the market had grown too expensive.
“Expectations were high, and they needed to deliver, so thankfully they have delivered,” said Nate Thooft, senior portfolio manager at Manulife Asset Management. “As long as earnings continue to follow through and economic data doesn’t roll over materially, stocks can keep going. People will say that valuations are expensive, but I would say, ‘Yeah, but not relative to fixed income.’ ”
Under Armour’s A-class shares jumped 9.9% to $21.67, the biggest gain in the S&P 500, after the company reported a bigger profit than analysts expected. A rise in sales abroad helped push its revenue to $1.12 billion, up from $1.05 billion in last year’s first quarter.
PayPal Holdings climbed 6.2% to $47.15 after also reporting stronger revenue and earnings than Wall Street forecast.
In after-hours trading, Amazon jumped about 4% after its quarterly results — released after markets closed — beat expectations.
Energy stocks slumped with the price of oil. Benchmark U.S. crude dropped 65 cents, or 1.3%, to $48.97 a barrel, while Brent crude fell 38 cents to $51.44 a barrel.
Noble Energy sank 4.7% to $32.57, and offshore drilling contractor Transocean fell 3.4% to $11.06.
The incremental moves made by stock indexes the last two days belie the many crosscurrents coursing through the market. Stocks jumped early in the week, in part on relief after the first round of France’s presidential election. Results indicate France may not try to break apart from the European Union.
Washington is also a big factor. White House officials unveiled the broad outlines of a tax plan Wednesday, though many specifics are still to be determined. A potential shutdown of the federal government also looms unless Congress can agree on a spending bill.
Gold rose $1.70 to $1,265.90 an ounce, silver fell 10 cents to $17.27 an ounce and copper fell 1 cent to $2.58 a pound.
Natural gas slipped 3 cents to $3.24 per 1,000 cubic feet, heating oil fell 3 cents to $1.51 a gallon and wholesale gasoline fell 4 cents to $1.55 a gallon.
The euro fell to $1.0882 from $1.0899. The dollar fell to 111.23 yen from 111.38. The British pound rose to $1.2903 from $1.2843.
Government bond prices rose. The 10-year Treasury yield fell to 2.29% from 2.30%.