Monday, the S&P 500 and the NAS Comp closed at record highs as Chinese workers and factories slowly returned to business following a Lunar New Year holiday that was protracted by the deadly coronavirus outbreak.
All 3 major US stock indexes advanced in a broad-based rally, boosted by index leaders Amazon.com, Microsoft Corp and Alphabet Inc.
Worries over the coronavirus have market participants cautious, with the death toll rising to 908 and the World Health Organization (WHO) warning that new cases outside of China could be “the spark that becomes a bigger fire.”
But upbeat earnings, positive economic data and China’s recent stimulus have attracted buyers to the US equities market. “It is an index buy and it is growth Vs value.”
The DJIA rose 174.31 pts, or 0.6%, to 29,276.82, the S&P 500 gained 24.39 pts, or 0.73%, to 3,352.1 and the NAS Comp added 107.88 points, or 1.13%, to 9,628.39.
Of the 11 major sectors in the S&P 500 all but energy ended the session in the Green, with tech and consumer discretionary shares posting the largest percentage gains.
Q-4 earnings season is approaching 75%, with 324 of the companies in the S&P 500 having reported. Of those, 70.7% have beat Street estimates, according to Refinitiv data.
Analysts see aggregate Y-Y Q-4 earnings growth of 2.3%, a reversal from the 0.3% decline analysts projected on 1 January
Advancing issues outnumbered declininers on the NYSE by a 1.50-to-1 ratio, and on NAS Comp, a 1.46-to-1 ratio favored advancers.
The S&P 500 posted 46 new 52-wk highs and 4 new lows; the NAS Comp Comp recorded 105 new highs and 96 new lows.
Volume on US exchanges was 6.60-B shares, compared with the 7.66-B average over the last 20 trading days.
HeffX-LTN’s overall technical analysis for the major US stock market indexes is Very Bullish in here.