Earnings, Commodity Gains Lift U.S. Stocks to Fresh Highs
Indexes hit new intraday records; Boeing shares surge nearly 9%
and Amrith Ramkumar
Updated July 26, 2017 12:37 p.m. ET
Dow, S&P 500, Nasdaq touch intraday records
Dollar, Treasury yields steady ahead of Fed statement
Oil gains, copper at two-year high
U.S. stock indexes touched fresh intraday records Wednesday, boosted by the latest batch of corporate earnings and higher commodities prices.
The Dow Jones Industrial Average advanced 104 points, or 0.5%, to 21717. The S&P 500 rose 0.1%, and the Nasdaq Composite added 0.2%.
While the S&P 500 and Nasdaq have been setting fresh intraday records this week, Wednesday’s advance marked the Dow industrials’ first such high since July 14.
“Earnings in general have been very good,” said Paul Brigandi, managing director and head of trading at Direxion Investments. “That’s fueled the continued optimism in the market.”
Boeing shares led the Dow industrials higher following the company’s quarterly earnings report, jumping 8.7% to $230.85. The aerospace giant added more than 100 points to the blue-chip index after beating profit expectations and raising its full-year guidance. With its advance, Boeing vaulted past Goldman Sachs to become the priciest stock in the Dow.
Shares of Advanced Micro Devices rose 8.2%, making it one of the best performers in the S&P 500, after the chip maker reported a climb in revenue that beat analyst expectations. After releasing results, shares of AT&T rose 4.7%, while Coca-Cola shares edged up 0.4%.
Ford Motor fell 2.1% however, despite posting an increase in second-quarter profit. Akamai Technologies declined 14% after releasing disappointing guidance for the third quarter, making it one of the worst performers in the S&P 500.
Roughly a third of the S&P 500 has reported results so far, with 75% of the companies beating earnings estimates as of Wednesday morning, according to FactSet.
Amazon.com shares rose 1.1%, putting it on track to close with a market value above $500 billion for the first time, according to FactSet. The e-commerce giant is scheduled to report earnings Thursday.
U.S. crude oil rose 1.4% to $48.55 a barrel after data showed U.S. crude supplies fell more than expected last week, supporting energy stocks. The S&P 500 energy sector gained 1%.
Many analysts will be closely watching the Federal Reserve’s statement, which is scheduled to be released at the conclusion of its two-day meeting later Wednesday. While most investors don’t expect a change in interest rates at this juncture, they will be monitoring the statement closely for new details about inflation and when the bank might start shrinking its balance sheet.
“I wouldn’t rule out an announcement on balance sheet reduction,” said Kathy Jones, chief fixed-income strategist at the Schwab Center for Financial Research. “I’ll be watching most closely for any statements on inflation—that’s been the big concern,” she added.
Investors see just a 3% chance of a rate increase later Wednesday and a roughly 52% chance of a rate rise by the end of the year, according to Fed-fund futures tracked by CME Group .
The yield on the 10-year U.S. Treasury note edged up to 2.334%, according to Tradeweb, from 2.328% on Tuesday. Yields rise as prices fall. The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was up nearly 0.1%.
Federal Reserve Board Chairwoman Janet Yellen. Investors will watch the U.S. central bank’s policy statement for hints at whether there will be a rate rise this year.
Federal Reserve Board Chairwoman Janet Yellen. Investors will watch the U.S. central bank’s policy statement for hints at whether there will be a rate rise this year. Photo: Pete Marovich/Getty Images
Elsewhere, the Stoxx Europe 600 added 0.5%. Australia’s S&P/ASX 200 rose 0.9% after Australian inflation figures were weaker than expected but the Australian central bank dismissed a need to change its stance. Japan’s Nikkei Stock Average gained 0.5% to end a three-session losing streak, while Hong Kong’s Hang Seng Index rose 0.3%.
Write to Riva Gold at
riva.gold@wsj.com