Par Devik Jain et Shashank Nayar
(Reuters) – Major Wall Street indices hit record highs on Tuesday, benefiting from a series of encouraging earnings reports, as investors anticipated the next Federal Reserve meeting at which policymakers are expected to announce the withdrawal of the stimulus measures from the pandemic era.
Actions of Under protection Inc (NYSE 🙂 jumped 15.5% after the sportswear maker raised its annual revenue and profit forecast.
Arista Networks (NYSE 🙂 jumped 19.9% to a new high as brokerage houses raised their price targets on the cloud infrastructure provider’s shares following strong third-quarter results.
Simon Property Group (NYSE 🙂 added 5% after the mall operator raised its quarterly earnings and dividend forecast for 2021.
The economically sensitive Dow Jones Transportation index climbed 5.5% to an all-time high, driven by an 88.6% increase in the car rental company’s shares Budget Notice (NASDAQ :).
Seven of S&P’s top 11 sectors advanced, with technology advancing the most.
The mega-cap technology is called Apple Inc (NASDAQ :), Microsoft Corp (NASDAQ 🙂 and Alphabet (NASDAQ 🙂 Inc, owner of Google, rose to help offset 3.2% declines in Tesla shares (NASDAQ 🙂 Inc.
Tesla boss Elon Musk said the electric car maker had not signed a contract with Hertz.
“Interest remains high in most FAANG stocks and really the tech as a whole and investors are more interested in owning these names than selling them for profit,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.
The spotlight is now on the Fed policy meeting starting on Tuesday, the US central bank is expected to approve plans to start cutting its monthly bond purchases, while the focus will also be on comments on interest rates and the persistence of the recent spike in inflation.
“Today the economy is doing much better and with inflation at current levels we don’t need such a large amount of accommodative policies and a cut will in turn send a signal to the market that the economy is doing better, ”said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut.
“The risk to the market, however, will arise next year and if inflation stays higher for a longer period of time, this will lead the Fed to be more aggressive or to speed up the timing of rate hikes that could lead to some market instability. “
An unprecedented amount of monetary and political stimulus has helped Wall Street rebound strongly from a pandemic-triggered recession last year. Coupled with that, a largely bullish third-quarter reporting season also helped push US stocks to record highs this week.
At 12:00 p.m. ET, the was up 95.92 points, or 0.27%, to 36,009.76, the was up 13.38 points, or 0.29%, to 4,627.05, and the was up 26.37 points, or 0.17%, to 15,622.28.
Pfizer Inc (NYSE 🙂 gained 4.5% after the drugmaker raised its full-year sales forecast for the company’s COVID-19 vaccine to $ 36 billion.
Falling issues outnumbered advances for a 1.41-to-1 ratio on the NYSE and a 1.44-to-1 ratio on the Nasdaq.
The S&P Index recorded 50 new 52-week highs and four new lows, while the Nasdaq recorded 148 new highs and 28 new lows.