The S&P 500 rose 0.4 percent to 1,871.75 at 4 p.m. in New York today, putting its five-day advance at 3.1 percent. The Dow Jones Industrial Average added 38.21 points, or 0.2 percent, to 16,446.75.
“The few earnings that we’ve had so far have been coming in pretty well,” John Fox, director of research at Fenimore Asset Management in Cobleskill, New York, said in a phone interview. “All the fundamentals still line up that stock prices can go higher. Interest rates are still low, the economy’s getting better. All of that is still a good environment for equities.”
The S&P 500 jumped 2.7 percent last week, the most since July to rebound from the previous week’s technology-led selloff, as corporate earnings from Morgan Stanley to Citigroup Inc. and Yahoo! Inc. surpassed estimates and Federal Reserve Chair Janet Yellen reiterated the bank’s commitment to supporting the economy.
The benchmark index is 1 percent below its record high reached April 2. U.S. equity markets were closed on April 18 for the Good Friday holiday.
Netflix Inc. and Zions Bancorporation are among S&P 500 companies reporting earnings today. More than 70 percent of the ones that have announced results this season have beaten analysts’ profit estimates, data compiled by Bloomberg show.
Raise Guidance
Analysts project that earnings at S&P 500 companies increased 0.7 percent in the first quarter, while revenue climbed 2.6 percent, according to the average estimate.“I suspect most companies are going to raise guidance for the upcoming quarters thanks to the pumped up demand and the spring thrall,” Patrick Spencer, who helps oversee more than $100 billion as head of equity sales at Robert W. Baird & Co. in London, said in a phone interview. “The economy remains in a sweet spot. I’m very optimistic for this year.”
Data today showed an index of economic strength in the U.S. rose in March by the most in four months, a sign the economic expansion will strengthen following harsh winter weather. The Conference Board’s gauge of the outlook for the next three to six months climbed 0.8 percent after rising 0.5 percent in February.
