U.S. Stocks Rise on Strong Earnings - The Wall Street Journal
U.S. stocks rose to start August as investors cheered strong earnings growth.
The SP 500 added 0.5% Monday after closing out a sixth consecutive monthly advance. The Dow Jones Industrial Average added about 210 points, or 0.6%. The tech-heavy Nasdaq Composite added 0.3%.
Investors have been upbeat that the economic expansion will boost corporate profits and enable stocks to keep rising, albeit at a slower pace. A record number of companies have been beating analysts’ estimates for earnings this season, according to Deutsche Bank. This week, traders will be parsing earnings from companies including Uber Technologies and Ford Motor.
Some are cautious that the highly contagious Delta strain of coronavirus, a prolonged spell of inflation and China’s efforts to rein in tech firms could lead to bouts of volatility.
“There are a few good reasons why the economy will continue to grow at above normal rates,” said Edward Smith, co-chief investment officer at U.K. investment firm Rathbone Investment Management. Consumers are spending freely, companies plan to invest in their businesses and firms are restocking inventories, he said.