Companies are turning in much stronger profit reports for the summer than analysts had expected.
Technology and health care companies helped push stocks higher on Wall Street Tuesday, nudging major indexes to new highs. The S&P 500 rose 0.2 percent and notched its second all-time high in two days. The Dow Jones Industrial Average rose less than 0.1 percent, good enough for its third straight record high. The Nasdaq also edged up less than 0.1 percent. Trading was choppy and lost some momentum toward the end of the day as investors continued to review mostly solid company earnings and encouraging reports on consumer confidence and new U.S. home sales. Solid earnings reports helped lift several major companies. UPS jumped 6.9 percent for the biggest gain in the S&P 500 as higher shipping rates helped the package delivery service easily beat analyst’s third-quarter profit forecasts. Hasbro rose 3.2 percent after the maker of Transformers, My Little Pony and other toys reported solid financial results. Stocks have been pushing broadly higher as companies turn in much stronger profit reports for the summer than analysts had expected. “Right now, valuations are high and the market needs some reassurance from corporate earnings,” said Ernesto Ramos, chief investment officer in the U.S. for BMO Global Asset Management. “There are still plenty of risks out there, but the market is focusing on the good things right now.
