Dow rises 100 points to another all-time high amid strong earnings
26 Oct 2021
U.S. stocks climbed to record levels on Tuesday as investors await a slew of major technology earnings.
The Dow Jones Industrial Average gained 100 points to touch another all-time high. The S&P 500 rose 0.4%, hitting an intraday record as well. The Nasdaq Composite traded 0.6% higher, sitting 0.5% below its record high.
United Parcel Service saw its shares jump 7% after the shipping firm posting strong beats on profit and revenue across all business segments.
General Electric rose 2% after the company issued an upward revision to its full-year earnings forecast while reporting higher than expected third-quarter profit.
Tesla gained again after the electric vehicle company soared more than 12% in the previous session to reach a $1 trillion market cap for the first time.
Technology darlings Alphabet and Microsoft traded higher heading into their earnings reports after the bell on Tuesday. Microsoft bulls are expecting a strong quarter for Microsoft, bolstered by its key Azure business. Analysts are expecting Alphabet earnings to come in 43% higher year over year.
“Earnings season is off to another great start, but now the big test is will the big tech names step up? With stocks at all-time highs, the bar is indeed quite high and tech will need to impress to help justify stocks at current levels,” said Ryan Detrick, chief financial strategist at LPL Financial.
Of the 119 companies in the S&P 500 that have reported earnings, 83% beat expectations, according to Refinitiv. S&P 500 companies are expected to grow profit by about 35% in the third quarter.
Twitter, Advanced Micro Devices and Robinhood also report quarterly earnings after the bell on Tuesday.
Social media giant Facebook dipped 0.6% after the company topped analysts’ earnings expectations. Facebook missed expectations for revenue and monthly active users.
Shares of Intercontinental Exchange jumped 1.4%, the day after CNBC reported that Mastercard will partner with ICE’s spinoff Bakkt in a move to allow customers to integrate cryptocurrencies into their products. ICE will provide behind-the-scenes custodial services for those that sign up.