By a smidgen, S&P breaks record
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.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Monitoring apps allow children to keep tabs on aging parents via smartphone
- Mylan to take buyout bid to Perrigo shareholders
- Weavertown Environmental’s female CEO doesn’t think in terms of gender
- Energy Spotlight: Jaime Johnson
- Salaried workers’ overtime rule eyed
- Stocks drop as Greece falters, crude oil rises
- March trade deficit swells 43% to 6-year high
- Kennametal posts loss on restructuring, lower sales
- Washington Health buying Southwest Regional Medical Center in Waynesburg
- Wolf looks at health insurance exchange for Pennsylvania
- Google ‘Project Fi’ aims at cheaper, reliable wireless services