TribLIVE

| Business

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

By a smidgen, S&P breaks record

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By The Associated Press
Monday, Oct. 21, 2013, 8:15 p.m.
 

NEW YORK — The Standard & Poor's 500 index eked out the smallest of gains to set a record high on Monday as investors assessed third-quarter earnings news.

Earnings will hold investors' attention this week as major American companies, including McDonald's, Boeing and Procter & Gamble report their results. Rising profits have been a key support for the rally in stocks.

Toymaker Hasbro and the V.F. Corporation, which owns clothing brands including Wrangler and The North Face, were among the biggest gainers in the S&P 500. Both reported earnings that beat analysts' expectations. McDonalds dipped as it reported disappointing revenue.

The S&P 500 closed up a fraction of a point at 1,744.66, its third consecutive record close. Stocks climbed last week when Washington reached a deal to end a 16-day government shutdown and avert a default on the nation's debt.

The index is up 22 percent for the year, putting it on track for its best year since 2009.

The Dow Jones industrial average edged down 7.45 points, or 0.1 percent, to 15,392.20. The Nasdaq composite rose 5.77 points, or 0.2 percent, to 3,920.05.

Stocks will likely continue adding to their gains, at least until the end of the year, as investors get more confident that the market's rally is sustainable, said Joe Bell, a senior equities analyst at Schaeffer's Investment Research.

“We've had a pretty decent run here,” Bell said. “It wouldn't surprise me if we saw the momentum slow a bit through the end of October and then have a nice rally through November and December.”

McDonald's fell 61 cents, or 0.6 percent, to $94.59 after the world's biggest hamburger chain's revenue fell short of Wall Street analysts' expectations.

Hasbro surged after reporting that its net income rose 17 percent as sales increased. Its adjusted results and revenue topped analysts' estimates. The stock climbed $2.48, or 5.2 percent, to $49.72. V.F. Corporation rose $6.93, or 3.4 percent, to $211.23 after its earnings beat analysts' expectations.

Netflix jumped in after-hours trading after the company said its net income quadrupled to $32 million, or 52 cents a share. That beat analyst expectations for 48 cents a share.

Companies in the S&P 500 are expected to report earnings growth of 3.2 percent for the July-to-September period, according to the latest data from S&P Capital IQ. About 60 percent of companies that have reported earnings have beaten analysts' expectations.

“Earnings so far have been excellent,” said Jerry Braakman, chief investment officer of First American Trust. “Earnings are coming in and beating (expectations) by a penny here and there, and we're very comfortable with that.”

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Business Headlines

  1. Travelers find direct Web route to Priory’s spirited past in North Side
  2. Pa. improves performance among competitive electric markets
  3. PPG puts brand 1st in strategy to reach commercial paint market
  4. U.S. Steel posts quarterly loss, declares dividend
  5. EPA ordered to ease limits on cross-border air pollution that involves Pennsylvania
  6. Ambridge’s PittMoss takes off with help from TV show, Mt. Lebanon native Cuban
  7. Consol Energy, Range Resources report 2Q losses, plan deeper cuts
  8. Muni bond funds stressed
  9. Stocks end 5-day slide on strong Ford, UPS earnings
  10. Plummeting natural gas prices slash revenue of Marcellus shale producers
  11. Bayer sets sights beyond aspirin