By Yashaswini Swamynathan
U.S. stocks were on track to snap a three-day losing streak on Monday as investors turned their attention to the first-quarter earnings season, while geopolitical concerns took a back seat. The latest earnings season is expected to show whether companies can live up to their lofty valuations, especially after a post-election rally.Profits of S&P 500 companies are estimated to have risen 10.4 percent in the latest quarter, the first double-digit percentage growth since the third quarter of 2014, according to Thomson Reuters I/B/E/S. The influence of geopolitical risks, which had dominated market sentiment last week, seemed to be waning. President Donald Trump's national security adviser, H.R. McMaster, said on Sunday the United States, its allies and China were working on a range of responses to North Korea's latest failed ballistic missile test. However, McMaster indicated that Trump was not considering military action for now.
"We got in and out of the long weekend without any major news or controversy on the geopolitical front," said Art Hogan, chief market strategist at Wunderlich Equity Capital Markets in New York. "The anticipation of better earnings from the first quarter may shift the momentum in the favor of this market at least in the near-term."At 12:47 p.m. ET (1647 GMT), the Dow Jones Industrial Average was up 112.67 points, or 0.55 percent, at 20,565.92, the S&P 500 was up 12.33 points, or 0.53 percent, at 2,341.28 and the Nasdaq Composite was up 32.46 points, or 0.56 percent, at 5,837.61.
All of the 11 major S&P 500 sectors were higher, led by technology, which was up for the first time in 11 days.Among stocks, Amazon.com was up 1.3 percent at $896.79 after Credit Suisse raised its price target to $1050 from $900. The online retailer's shares also provided the biggest boost to the S&P and the Nasdaq. Credit Suisse also raised its price target on Boeing, sending the aircraft maker's shares up 1.4 percent.
Netflix, which is scheduled to report results after the bell on Monday, was up 2.7 percent at $146.75. Arconic was the biggest percentage gainer on the S&P after Chief Executive Klaus Kleinfeld resigned amid pressure from activist hedge fund Elliott Management. Advancing issues outnumbered decliners on the NYSE by 1,996 to 881. On the Nasdaq, 1,816 issues rose and 960 fell.The S&P 500 index showed seven 52-week highs and no lows, while the Nasdaq recorded 22 highs and 38 lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
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Updated Date: Apr 17, 2017 23:30:10 IST