Wall Street
Star Charts. “At the end of the day, it’s still a bull market. It’s more volatile than it was last year, but the path of least resistance is still higher.”
The S&P 500 rose 38.48 points to 4,173.42. The Dow Jones Industrial Average gained 316.01 points, or 0.9%, to 34,137.31. Both the S&P 500 and Dow hit alltime highs on Friday. The technology-heavy Nasdaq
added 163.95 points, or 1.2%, to 13,950.22.
The Russell 2000 index of smaller company stocks, which has been outpacing the broader market all year, led the way higher, climbing 51.42 points, or 2.3%, to 2,239.63.
The yield on the 10-year Treasury held steady at 1.56%.
Much of the market’s focus over the next two weeks will be on individual companies and how well their quarterly results turn out. This week roughly 80 members of the S&P 500 are due to report
results, as well as one out of every three members of the Dow. On average, analysts expect quarterly profits across the S&P 500 to climb 24% from a year earlier, according to FactSet.
“Those companies that meet or beat on revenue and paint a nice picture for the rest of the year are being rewarded,” said J.J. Kinahan, chief strategist with TD Ameritrade. “When a railroad company is saying we really see improvement for the second half of the year, that’s a really good sign.”
Railroad operator CSX
said its first-quarter profit fell because of higher expenses, but it expects to benefit as the U.S. economy strengthens further over the rest of the year. The stock rose 4.3%
Health care stocks helped lead the broader market higher after several companies reported solid financial results. Surgical device maker Intuitive Surgical rose 9.9% after handily beating analysts’ first-quarter forecasts. Medical device maker Edwards Lifesciences rose 6.3% after also reporting strong financial results.