Healthcare giant Johnson & Johnson, consumer behemoth Procter & Gamble and streaming service Netflix are among companies that have reported better-than-expected profits for the quarter. On the technology front, Apple rolled out new accessories this week while Google introduced its latest line of phones on Tuesday.
The combination fueled gains not just on the S&P 500 but also the broad-based Dow Jones Industrial Average and the tech-laced Nasdaq Composite as investors embraced risk, batting away worries about rising inflation and the Federal Reserve’s planned tapering of its long-running stimulus program.
“Investors remain upbeat on earnings as more companies continue to deliver strong beats,” Ed Moya, an analyst at online trading platform OANDA said. “Healthcare and insurers impressed while consumer stocks battled surging commodity and transportation costs. Every inflation warning from corporate America was somewhat expected, so markets won’t get unnerved unless they start to see the Fed[eral Reserve] panic.”
The S&P 500 index, which groups the top 500 US stocks, closed up 33 points, or 0.7%, at 4,520. The blue-chip indicator is less than 30 points away from a record high and is up 4.9% for October.
The Dow finished the session at 35,457, up 200 points, or 0.6%. The Dow is up 4.8% for the month.
Nasdaq, comprising Big Tech names such as Facebook, Amazon, Apple, Netflix and Google, closed at 15,129, up 107 points, or 0.7%. It has gained 4.7% since October began.