On Tuesday, Wall Street saw new highs at the open, with gains from healthcare and bank stocks continuing the new year rally. A 1.7 percent gain in Johnson & Johnson and a 5 percent leap in Boston Scientific assisted the S&P health sector to gain 0.7 percent.
At 9:41 a.m. ET, the Dow Jones Industrial Average was up 66.68 points, or 0.26 percent, at 25,349.68 and the S&P 500 was up 5 points, or 0.18 percent, at 2,752.71. The Nasdaq Composite was up 4.08 points, or 0.06 percent, at 7,161.47.
Several retailers such as Target, Kohl’s Corp and Lululemon Athletica have reported a healthy increase for same-store sales for the holiday season and have raised their profit forecasts for the fourth quarter.
“We are looking at a quiet day, with no major news. But investors are starting to prepare for the next round of earnings that could keep the market on fire,” said Andre Bakhos, managing director at an investment firm. “People are going to look for what is going to create opportunity for more money to flow into equity.”
Investors are look forward to the start of the quarterly earnings season to get a better understanding of the impact of the recent tax cuts and profit forecasts. Fourth quarter earnings for S&P 500 companies are forecast to increase 11.8 percent, compared to last year’s 8 percent increase. Seven of the eleven major S&P sectors were higher, led by a 0.9 percent gain in financial stocks.
THE HERALD FINANCE REPORT
Start your workday the right way with the news that matters most.
JPMorgan and Bank of America gained over 0.8 percent while Goldman Sachs gained 1 percent. U.S. 10-year Treasury yields increased to their highest since March.
Advanced Micro Devices fell 4.15 percent following the suspension from Microsoft of patches to protect against security threats for computers running AMD chipsets after complaints were reported taht software updates froze their devices.
GoPro dropped following the action camera-maker reported a weak holiday quarter and stated that it would be willing to partner with a large player in the sector
Advancing issues outnumbered decliners on the NYSE by 1,381 to 1,141. On the Nasdaq, 1,363 issues rose and 1,092 fell.