S&P 500 climbs towards record high, earnings in focus
By Noel Randewich (Reuters) - The S&P 500 climbed towards a record high on Monday, supported by expectations of lower interest rates, while investors awaited quarterly earnings from marquee companies Facebook, Alphabet and Amazon later this week. Facebook Inc rallied 2.0% ahead of its report due out after the bell on Wednesday, while Amazon.com Inc and Google-parent Alphabet Inc were each up more than 0.7% ahead of their reports on Thursday
By Noel Randewich
(Reuters) - The S&P 500 climbed towards a record high on Monday, supported by expectations of lower interest rates, while investors awaited quarterly earnings from marquee companies Facebook, Alphabet and Amazon later this week.
Investors' reactions to the reports of these top-tier growth companies could affect broader market sentiment, with the S&P 500 about 1% below its July 15 record high close.
"How is that going to affect my other tech holdings and the market overall? That is more worrying than my actual investment in Alphabet," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
The technology index <.SPLRCT> jumped 1.2%, the most among the S&P sectors, while the Philadelphia chip index <.SOX> surged almost 2%. Apple added 2.3% to $207.22 after Morgan Stanley raised its price target to $247 from $231.
Shares of Boeing Co
The European Central Bank meets on Thursday and money markets are pricing in a more than 50% chance of a 10-basis-point cut in interest rates. Federal Reserve officials are set to meet just days later, and are widely expected to lower rates by at least 25 basis points.
Hopes of an interest rate cut have helped Wall Street's main indexes hit record levels this month, recovering from a slump in May caused by a sudden escalation of U.S.-China trade tensions.
About 30% of S&P 500 companies are set to report second-quarter results this week, with overall profits now estimated to rise about 1%, according to Refinitiv IBES data.
Chip stocks gained on news that White House economic adviser Larry Kudlow will host a meeting with executives of semiconductor and software companies on Monday to discuss a U.S. ban on sales to China's Huawei Technologies [HWT.UL].
The Dow Jones Industrial Average <.DJI> rose 0.07% to end at 27,172.04 points, while the S&P 500 <.SPX> gained 0.28% to 2,985.02. The Nasdaq Composite <.IXIC> added 0.71% to 8,204.14.
Second-quarter earnings have been mixed so far, with major banks raising concerns about profit growth in a low-interest-rate environment. Microsoft Corp
Declining issues outnumbered advancing ones on the NYSE by a 1.06-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favoured decliners.
The S&P 500 posted eight new 52-week highs and five new lows; the Nasdaq Composite recorded 47 new highs and 118 new lows.
Volume on U.S. exchanges was 5.1 billion shares, compared to the 6.4 billion average for the full session over the last 20 trading days.
(Reporting by Noel Randewich; Additional reporting by Amy Caren Daniel and Karina Dsouza in Bengaluru; Editing by Chris Reese and Leslie Adler)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.