TODAY'S PAPER
Scattered Clouds 45° Good Evening
Scattered Clouds 45° Good Evening
Business

Stocks soar on rising earnings, strong outlook

Indexes moved up after strong earnings from big

Indexes moved up after strong earnings from big businesses including Catepillar and McDonald's. Photo Credit: AP / Richard Drew

Profits are climbing for companies, and so are their stock prices.

More big businesses joined the earnings parade Tuesday, saying their profits were even larger in the first three months of the year than analysts were expecting, including Caterpillar and McDonald’s.

The encouraging reports pushed U.S. indexes to their second straight day of big gains, placing them either close to or firmly in record territory.

The Standard & Poor’s 500 index rose 0.61 percent, to 2,388.61. It’s within a third of a percent of its all-time high, set at the start of March.

The Dow Jones industrial average gained even more due to the big jumps for Caterpillar and McDonald’s, which are among the 30 stocks in the average. The Dow rose 232.23 points to 20,996.12.

The Nasdaq rose 0.70 percent to 6,025.49, its first move above 6,000 points. The Russell 2000 of smaller-company stocks was up 13.13 points, or 0.94 percent, at 1,411.08.

“Earnings have come through quite nicely so far,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust.

Many investors say strong profit reports are necessary to justify the big gains stocks have made. Stock prices in recent years have been climbing faster than earnings.

More news

Sorry to interrupt...

Your first 5 are free

Access to Newsday is free for Optimum customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE