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(Australian Associated Press)
NEW YORK: The S&P 500 climbed to an all-time high on Tuesday on a heavy day of corporate results highlighted by well-received reports from McDonald’s and Caterpillar and gains for bank shares.
The Nasdaq also managed to set a record high despite declines in Google parent Alphabet after its results. Alphabet shares ended down 2.9 per cent.
Shares of McDonald’s rose 4.8 per cent after the fast-food chain reported strong global sales. Caterpillar shares surged 5.9 per cent after the heavy equipment maker raised its full-year outlook for the second time this year.
Those stocks spurred the Dow industrials, leaving the index close to record territory.
Data showing a jump in US consumer confidence amid optimism over the labour market added to the bullish sentiment.
The Dow Jones Industrial Average rose 100.26 points, or 0.47 per cent, to 21,613.43, the S&P 500 gained 7.17 points, or 0.29 per cent, to 2,477.08 and the Nasdaq Composite added 1.37 points, or 0.02 per cent, to 6,412.17.
The future path of interest rates will be in focus on Wednesday with the expected statement from the Federal Reserve.
Tuesday’s trading reflects anticipation that the Fed’s statement “won’t be too aggressive in terms of unwinding the balance sheet or laying out a path for more rate hikes,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama. “You have low rates, low inflation, good earnings and we’re up 100 points on the Dow.”
LONDON: Strong results and buoyant basic resource stocks boosted Britain’s blue-chip index on Tuesday and small-cap luxury shoemaker Jimmy Choo soared 17 per cent after an agreed bid by US retailer Michael Kors.
The FTSE 100 jumped 0.8 per cent, erasing the previous session’s losses as results from Informa and Segro impressed.
Media company Informa rose as much as seven per cent to a record high before paring some gains and ending up 2.7 per cent.
“Informa has successfully repositioned itself in recent years through a combination of investment and acquisition activity,” said Roddy Davidson, media analyst at Shore Capital, reiterating a “hold” view on the stock.
“We believe this process has improved the performance and prospects of the group’s underlying businesses and enhanced its ongoing organic growth potential.”
Informa’s focus on exhibitions space has helped it outperform the broader European media sector, one of the worst-performing in the year-to-date.
Jimmy Choo was thrown into the spotlight, hitting a record high after Michael Kors swooped in to buy it for $1.2 billion. Its shares rose 17 per cent.
The pan-European STOXX 600 index rose 0.4 per cent, holding onto gains seen earlier in the session, as Wall Street opened higher and a key gauge of expected volatility plunged to its lowest in more than 23 years.
Germany’s DAX rose 0.45 per cent to 12,264.31.
TOKYO: Asian share benchmarks sagged on Tuesday as investors awaited a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in US politics kept most indexes trading within a narrow range.
Japan’s Nikkei 225 index slipped 0.1 per cent to 19,955.20, and the Shanghai Composite index slipped 0.21 per cent to 3,423.6894.