Another rally on
The S&P 500, Dow Jones Industrial Average and Nasdaq composite notched all-time highs, extending the market's gains after a strong start to the year.
A batch of solid economic data injected more optimism into markets a day after the signing of an initial trade deal between the
Consumers have been the backbone of economic growth and the government’s December report on retail sales showed that they continued spending at a healthy pace. Encouraging reports on manufacturing, weekly applications for unemployment aid and homebuilders' confidence also helped lift the market. Investors also weighed a mixed bag of corporate earnings.
The good economic news follows the signing of the “Phase 1” trade deal between the
Meanwhile, the
The trade deals and positive economic data have helped fuel optimism that corporate profits will be strong this year after coming in flat to down for most of 2019, and that's keeping investors in a buying mood.
“Because we are continuing to see 2-2.5% GDP growth in the
The S&P 500 index climbed 27.52 points, or 0.8%, to 3,316.81. The index also set all-time highs on Monday and Wednesday.
The Dow rose 267.42 points, or 0.9%, to 29,297.64. The Dow closed above 29,000 for the first time on Wednesday. Stovall said it's possible we could see the Dow hit 30,000 this year.
"Because of expectations that we are probably underestimating economic and earnings growth, as a result that 30,000-level will be seen," he said.
The Nasdaq gained 98.44 points, or 1.1%, to 9,357.13.
Smaller-company stocks fared better than the rest of the market. The Russell 2000 index rose 22.82 points, or 1.4%, to 1,705.22.
The market's record-setting rally has the benchmark S&P 500 on track to close out the week with its second straight weekly gain.
Bond prices fell, sending yields higher. The yield on the 10-year
Technology companies were the clear leaders Thursday. Many of the companies stand to benefit from progress in trade relations because they are reliant on
A mix of retailers and consumer product makers also made solid gains. Home Depot rose 1.9% and Hanesbrands gained 2%.
Financial companies, including banks, also rose.
Energy, materials and utilities companies lagged the market in another sign that investors were confidently shifting more money into riskier holdings.
The first heavy week of corporate earnings reports rolled along Thursday with banks mostly finishing their reporting. Investment bank
Paint and coatings maker
While only small slice of the S&P 500 companies have reported quarterly results so far, management teams have been giving a mostly improved earnings outlook, Stovall noted.
Traders are focusing mainly on companies' outlooks for growth this year after posting flat-to-down earnings through the first three quarters of 2019.
Companies' earnings growth was limited last year due to uncertainty over
"A lot of people are assuming that the 2020 (earnings) growth of 7.9% will be revised substantially higher," Stovall said, noting that earnings growth expectations this year are higher for small caps stocks than they are for large caps. That's one reason why smaller-company stocks outperformed the broader market Thursday.
Traders bid up shares in
Benchmark crude oil rose
Wholesale gasoline rose
Gold fell
The dollar rose to
Markets in
AP Business Writer
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed., source