The Nasdaq hit a record intraday high on
Tuesday, extending its bullish run as healthcare stocks rose for
the sixth straight session, while a jump in banks boost the S&P
500 and the Dow.
America Express and Caterpillar, both up
more than 2 percent, led the 21 gainers among the 30 Dow
components and set the blue-chip index back on course for the
elusive 20,000-points mark.
Investors are looking to the upcoming corporate earnings
season to justify the record levels Wall Street has surged to in
a rally since Donald Trump's U.S. presidential election win on
While the rally has stalled of late, its continuation will
more immediately depend on the President-elect's news conference
on Wednesday, when investors will assess how his first few days
in the White House may look like.
Corporate earnings will be a factor over the next month.
"We've shifted from that exuberance post the election and
the rotation into some of the sectors and now we are entering a
wait-and-see mode with earnings knocking at the front door,"
said Art Hogan, chief market strategist at Wunderlich Equity
Capital Markets in News York.
"Earnings may be the pivot to move things higher."
S&P 500 companies look unlikely to disappoint.
They are set to post their strongest quarterly growth in
three years, with earnings estimated to have risen 5.8 percent
in the fourth quarter, mainly driven by financials, according to
Thomson Reuters I/B/E/S.
At 12:30 p.m. ET the Dow Jones Industrial Average was
up 62.12 points, or 0.31 percent, at 19,949.5 and the S&P 500
was up 9.73 points, or 0.43 percent, at 2,278.63.
The Nasdaq Composite was up 29.64 points, or 0.54
percent, at a record high of 5,564.25.
Eight of the 11 major S&P sectors were higher, led by a 1.03
percent gain in financials.
Big U.S. banks will kick off the earnings season, with
JPMorgan, Bank of America and Wells Fargo
scheduled to report on Friday. Bank of America and Wells
Fargo were up about 2 percent.
Healthcare stocks gained 0.65 percent and the
Nasdaq biotech index was 0.5 percent higher, both up for
the sixth session in a row.
Illumina surged 16.3 percent to $164.63 after the
diagnostics company gave a strong quarterly forecast and
launched a new product.
Zimmer Biomet rose 8 percent to $115.42 after the
orthopedics company said it expects fourth-quarter net sales
well above analysts' expectations.
Advancing issues outnumbered decliners on the NYSE by 1,959
to 890. On the Nasdaq, 1,830 issues rose and 916 fell.
The S&P 500 index showed 10 new 52-week highs and no new
lows, while the Nasdaq recorded 60 new highs and 15 new lows.