U.S. equities rose to record highs on Tuesday as investors remained optimistic about the market heading into the corporate earnings season.
The Dow Jones industrial average jumped 116 points to hit an intraday record. The S&P 500 also hit a fresh all-time intraday high rising 0.3 percent. Health care and financials were the best-performing sectors in the S&P 500. The Nasdaq composite climbed 0.1 percent; it also hit a record.
Financial giants BlackRock, J.P. Morgan Chase and Wells Fargo are among the companies set to report quarterly results later this week.
“Q4 is going to be fine,” said Maris Ogg, president at Tower Bridge Advisors. “I think the most important thing is going to be getting information on the impact of the tax cuts company by company. There’s no reason that shouldn’t be mostly positive.” President Donald Trump signed a bill last month that cut the federal corporate tax rate to 21 percent from 35 percent.
Some positive corporate news has already started to trickle down, giving the overall stock market a boost. On Tuesday, Target reported same-store sales growth of 3.4 percent for the holiday season, surpassing estimates. The stock climbed 3.3 percent.
SOURCE: Fred Imbert