The Nasdaq surged to a record high and the S&P500 climbed to within a chip-shot of its Feb 19th record high while the Dow Jones lagged the pair due to losses in financial and industrial stocks.
“Tech is the only trade,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “Things that were 10 years away on Feb. 18 are here now: Distance learning, seeing your doctor via Zoom, ordering pharmaceuticals via the mail.”
The Nasdaq Composite climbed 1% to 11,129.73, its fifth closing high this month. Seven of the 11 major S&P sectors rose, with technology providing the biggest support to the S&P 500 index.
Lowe’s Cos Inc and Home Depot Inc each rose more than 2% rose ahead of their earnings later in the week. The two home improvement chains are expected to have received a bump to their quarterly sales from consumers looking to do minor repair work while spending more time at home.
The S&P 500 retailing index climbed 1.4%, with heavyweights Walmart Inc and Target Corp also set to report results this week.
“Earnings season in general has been much better than expected, but a big part of that is because the expectation has been so low,” said Willie Delwiche, investment strategist at Baird in Milwaukee.
Rackspace Technology jumped over 10% after Reuters reported Amazon is in early talks to invest in the cloud services provider.
As of Friday, 457 companies in the S&P 500 had posted results, of which 81.4% came in above dramatically lowered expectations, according to Refinitiv data.
Minutes of the Federal Reserve’s latest meeting, due on Wednesday, are expected to provide more insight into the central bank’s view of an economic recovery, while housing starts data is also on tap.
Caution is expected to seep into markets ahead of the November U.S. presidential vote, as the election season kicks into higher gear with the Democratic National Convention, which runs Monday through Thursday.
The Dow Jones Industrial Average fell 0.31% to end at 27,844.91 points, while the S&P 500 gained 0.27% to 3,381.99.
Read more at Reuters