All three major U.S. indices closed higher on July 17 as investors responded strongly to the latest corporate earnings and better-than-expected economic data.
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The benchmark S&P 500 added 0.54% to finish the trading day at a record high of 6,297.36, its ninth all-time high of the year. The technology-laden Nasdaq Composite (NDAQ) index also closed at a record high, its 10th of the year, after rising 0.74% on the day to close at 20,884.27. Both indices also touched fresh intraday all-time highs.
The Dow Jones Industrial Average gained 229.71 points, or 0.52%, to settle at 44,484.49. The rally on July 17 comes a day after Wall Street endured a choppy trading session after U.S. President Donald Trump again threatened to fire U.S. Federal Reserve Chairman Jerome Powell before backing off those threats.
Strong Earnings
Stock market movers on the day included beverage and snack giant PepsiCo (PEP), whose shares rose more than 7% after the company reported better-than-expected second-quarter financial results. United Airlines (UAL) stock gained 3% after the airline offered new guidance for the remainder of the year.
Though early in the reporting period, Q2 earnings released so far have exceeded Wall Street’s expectations, fueling investor confidence. With about 50 S&P 500-listed companies having reported, 88% exceeded Wall Street’s expectations, according to data from FactSet (FDS).
Economic Data
U.S. markets also got a lift from economic data that showed ongoing strength in the U.S. economy. The Labor Department reported that initial jobless claims for the week ended July 12 came out at 221,000, a decrease of 7,000 from the previous week.
Separately, retail sales in June rose more than expected, according to the U.S. Census Bureau. Retail sales were up 0.6% from May, beating the 0.2% consensus estimate of economists. The S&P 500 is on pace for a 0.6% weekly advance, while the Dow is tracking for a 0.3% gain. The Nasdaq is the outperformer on the week, up about 1.5% through Thursday’s close.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY) has a consensus Moderate Buy rating among 504 Wall Street analysts. That rating is based on 427 Buy, 71 Hold, and six Sell recommendations issued in the last three months. The average SPY price target of $679.22 implies 8.62% upside from current levels.
