S&P 500 touches high as earnings drive gains

The S&P 500 index briefly traded at an all-time high Tuesday just as the U.S. stock market’s bull run came closer to becoming the longest on record.

The market’s benchmark index eked out a slight gain, closing a little below the high mark it set in January. The rally pushed the Russell 2000 index of smaller-company stocks to a record high.

The current bull market, which began in 2009, is on track to become the longest in history on Wednesday, surpassing the bull run of the 1990s.

Tuesday’s gains were driven by strong earnings by homebuilders, retailers and other companies.

“That we got to these levels in January was a big surprise, more so than we’re back there now,” said Bob Doll, chief equity strategist at Nuveen Asset Management. “We’ve had a mildly higher market after the correction on the back of these amazing earnings.”

Shortly before 1 p.m. Eastern Time, the S&P 500 briefly crossed above its latest closing high of 2,872 set on Jan. 26. The market took a steep plunge immediately after that, in early February, and has been mostly clawing higher since then, with some bumps along the way, thanks to a still-recovering economy and a boom in corporate profits.

Stocks have been buffeted by concerns about mounting trade tensions this spring and summer, particularly with China. Signs of potential progress have helped stocks rally in recent weeks.

“Earnings are still going to carry the market higher, but the trade issue holds us back for stocks keeping up with earnings,” Doll said.

Of the 93 percent of the companies in the S&P 500 that have reported quarterly results, 62 percent delivered earnings and revenue that beat analysts’ forecasts, according to S&P Global Market Intelligence.