S&P 500, Nasdaq close at record highs ahead of tech earnings

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S&P 500, Nasdaq close at record highs ahead of tech earnings

On Monday, benchmark S&P 500 and tech-heavy Nasdaq closed out the session at record closing highs ahead of a barrage of earnings’ reports of mega-cap tech shares scheduled to be released this week, though trade-sensitive Dow rounded off the day lower as a worrisome uptick in pandemic cases across the globe with India and Japan bearing the heaviest brunt, poured fresh scorns over investors’ optimism ahead of a pivotal Fed meet due to be held this week.

In point of fact, in the day’s modest gains in benchmark S&P 500 and Nasdaq were largely catalysed by Tesla Inc, whose quarterly earnings’ report published late in the day had topped analysts’ forecasts for both profit and revenues, alongside a raft of mega-cap tech-related growth stocks.

Aside from that, more than 40 per cent S&P 500 listed companies, whose earnings’ reports were due to be published between Tuesday and Thursday including Google parent Alphabet Inc., Google LLC., Apple Inc and Facebook Inc had shelved decent gained, while of 11 major S&P 500 sub-indices, seven had soared with energy stocked leading the gains with a rise of 0.6 per cent.

Wall St. rises as growth stocks surge ahead of earnings’ reports

Besides, as an approximated 85.5 per cent of 124 S&P 500-listed companies which had reported earnings’ reports thus far, topped analysts’ estimates for profits and revenues, prompting data provider IBES Refinitiv to raise its forecast to a 34.3 per cent profit growth in S&P 500 on a year-on-year basis, above an earlier estimate of a profit surge of 24.2 per cent in S&P 500 compared to the same time a year earlier, trade-sensitive Dow dwindled 0.18 per cent to 33,981.57 and benchmark S&P 500 added 0.18 per cent to a record closing high of 4,187.62, while tech-heavy Nasdaq jumped 0.87 per cent to an all-time peak of 14,138.78.

Meanwhile, addressing to an out and out optimism over Q1, 2021 earnings season with more firms raising their outlooks for Wall St. stocks lately, a Chief Investment Officer at IndexIQ, Sal Bruno said, “We’re way above the average for firms reporting earnings above estimates.

More important than the fact that they are beating on estimates is that they are raising their expectations and outlooks going forward, and that’s giving the markets a nice boost.