-
The S&P 500 and Nasdaq hit fresh records on Thursday on strong earnings and economic data.
-
Q2 earnings season is off to a strong start, with 71% of firms beating estimates.
-
Jobless claims also ticked lower while retail sales rose, soothing concerns about the economy.
US stocks closed at a record high on Thursday as traders brushed off the latest Trump-Powell drama and took in strong corporate earnings and positive economic data.
Major indexes popped a day after a brief spasm of volatility brought on by reports Donald Trump was gearing up to fire Federal Reserve Chairman Jerome Powell.
The Dow on Thursday gained more than 200 points. The S&P 500 and Nasdaq 100 each rose more than 0.5%, with both indexes reaching a new closing record.
Here’s where US indexes stood at the 4 p.m. closing bell on Thursday:
-
S&P 500: 6,297.50, up 0.54%
-
Dow Jones Industrial Average: 44,485.53, up 0.52% (+230.75 points)
-
Nasdaq Composite: 20,884.27, up 0.74%
Here’s what’s powering the latest all-time highs for the stock market.
Earnings season
Investors have been cheering a strong start to the earnings season, with shares of PepsiCo and United Airlines surging after posting earnings beats. PepsiCo popped 7%, while United Airlines rose as much as 4% Thursday before paring its gains in the afternoon.
Financial stocks also climbed, boosted by strong earnings from JPMorgan, Wells Fargo, Morgan Stanley, and Goldman Sachs this week.
Out of all S&P 500 companies that have already posted their second-quarter results, 71% have beaten earnings estimates, according to FactSet. The benchmark index is now on track to post more than 9% earnings growth for the quarter, the firm said in an analysis this week.
Upbeat data
The market was also comforted by signs that the US economy remains on solid footing despite worries about tariffs.
Initial jobless claims in the last week fell to 221,000, down by around 7,000 from the prior week, according to the Labor Department.
Americans also ramped up their spending more than expected last month. Retail sales rose 0.6% in June, according to the US Census Bureau, beating economists’ estimates.
Healthy data is smoothing over fears that economic growth will be dented by President Donald Trump’s tariffs.
“The damage from tariffs can’t be found yet,” Louis Navellier, the founder of Navellier & Associates, said of retail sales growth in a note on Thursday. “Granted, there is still a long way to go in reaching the final tariff agreements, but the turmoil that some feared is not showing up in the numbers, helping to explain why stocks are at all-time highs.”
Strong consumer spending, which accounts for around two-thirds of GDP growth, is also bolstering confidence that the US will avoid a recession this year.
“Consumers are flexing their spending muscle again,” Gina Bolvin, the president of Bolvin Wealth Management Group, wrote in a note. “Strong retail sales are like oxygen for the economy, and Wall Street is breathing a sigh of relief today.”
Read the original article on Business Insider
