Stocks tick further into record heights on Wall Street
NEW YORK >> Wall Street notched some more record highs on Monday as a better-than-expected profit reporting season gets into higher gear. The S&P 500 rose 0.5%, surpassing the peak it set on Thursday. Tesla jumped to the biggest gain in the S&P 500 after Hertz said it will buy 100,000 Model 3 vehicles for its fleet. Stocks broadly have been pushing higher recently as companies turn in much stronger profit reports for the summer than analysts expected. With roughly one in four S&P 500 companies having reported, more are topping expectations than usual, and by a wider margin.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below. NEW YORK >> Wall Street is ticking further into record heights on Monday, as a better-than-expected profit reporting season gets into higher gear.
The S&P 500 was 0.5% higher at 4,568 in the last hour of trading, surpassing its record closing high of 4,549.78 set on Thursday. The Dow Jones was up 65 points, or 0.2%, at 35,742, as of 3 p.m. Eastern time, and the Nasdaq composite was 1% higher.
Tesla jumped to the biggest gain in the S&P 500 after Hertz said it will buy 100,000 Model 3 vehicles for its fleet. The landmark deal for the electric-vehicle industry sent Tesla up 12.3%, and because it’s one of the biggest stocks in the market, Tesla’s moves have an outsized effect on the S&P 500.
Stocks broadly have been pushing higher recently as companies turn in much stronger profit reports for the summer than analysts expected. With roughly one in four S&P 500 companies having reported, more are topping expectations than usual, and by a wider margin, according to FactSet.
Elevator company Otis Worldwide became the latest to join the list, reporting revenue and profit that both topped Wall Street’s forecasts. Its stock fell 4.1%, though, after its forecast for earnings for the full year of 2021 fell slightly short of expectations.
S&P 500 companies so far have reported profits for the third quarter that were nearly 46% higher than year-ago levels. That has companies in the index on track to report overall growth of roughly 32.5%, according to FactSet. That compares with expectations for roughly 27% growth when the third quarter closed on Sept. 30.
Several of the market’s most influential stocks are set to report their own profits in the upcoming week. That includes Apple, Amazon, Microsoft and Google’s parent company, Alphabet. Because they’re the four biggest companies on Wall Street by market value, their stock movements have a huge effect on the S&P 500, even more than Tesla’s.
Facebook, the fifth-largest company in the S&P 500, will report its quarterly results after trading closes on Monday. It’s been dealing with controversy over how much it favors making profits over harming its users.
High inflation that’s been more stubborn than expected also continues to create winners and losers in the market.
Energy producers were strong after the price of U.S. oil topped $85 per barrel during the morning. It’s the first time that’s happened in roughly seven years, though the price sank back as the day continued.
But such gains were checked by losses for Kimberly-Clark, the maker of Kleenex and Huggies diapers, and other consumer products companies that are struggling with the effects of high inflation.