The S&P 500 hit fresh highs on Monday although the gains were limited. Investors are anticipating a busy week which comes with a surge of corporate earnings reports, economic data together with the Federal Reserve announcement.
With a gain of 0.1%, the broad index moved to 2,943.03, higher than the high set record in September. S&P 500 gains owe it to financials, climbing 0.9% thanks to BNY Mellon and Citigroup. The two rose 2% to top the list of top performers in the industry.
Recording a gain of 0.2% to 8,161.85, the tech-heavy Nasdaq Composite also set a new all-time high. Goldman Sachs led as Dow Jones Industrial Average closing 11.06 points above at 26,554.39.
This is a busy week with the expected quarterly results to be released by about 150 S&P 500 companies. Among them is Apple, Qualcomm, and General Electric. Alphabet released its results by the close of the day on Monday.
Earlier reports released on Monday indicate unexpected weak results from Restaurant Brands causing its shares to drop by 22% after it posted a decline in Tim Hortons sales. Spotify Technology suffered a huge loss raising eye-brows of its 100 million premium service subscribers. This affected its shares causing a drop of 0.1%.
FactSet reported that 77.5% of the 231 companies from the S&P 500 that had reported their quarterly results by Monday morning met the analyst expectations. The growth rate is reportedly about 1% past the expected 4.2% decline.
The S&P 500 and Nasdaq received support from strong corporate reports last week rising by 0.9% and 1.9% respectively.
Friday is the set date for the release of nonfarm payrolls report for the month of April alongside international trade numbers. It is expected that by this week construction spending, factory orders and consumer confidence data will be released.
According to data posted on Monday, the core personal consumption expenditures index, the Fed’s inflation tool was static throughout March. Refinitiv’s economists’ polls anticipate a 1.7% gain.
This week is also the time the Fed has scheduled a monetary policy meeting.
Investors are on the lookout for Fed’s plan concerning its balance sheet progress and its prediction about the economy.