S&P 500, Nasdaq Hit All-Time Highs as Twitter Records Sixth Straight Profitable Quarter
The U.S. stock market surged on Tuesday, with the S&P 500 and Nasdaq notching their first record highs in more than six months on better than expected financial results from the likes of Twitter, Lockheed Martin and United Technologies.
New Highs for Stocks
All of Wall Street’s major indexes recorded big gains on Tuesday. For the first time since late September, the S&P 500 Index returned to record territory, climbing 0.9% to 2,933.68. Ten of 11 primary sectors finished higher, led by health care. Consumer discretionary, technology and real estate all outperformed the benchmark.
The Nasdaq Composite Index surged 1.3% to 8,120.82, where it joined the S&P 500 in record territory.
Meanwhile, the Dow Jones Industrial Average notched gains of 145.34 points, or 0.6%, to close at 26,656.39. The blue-chip index has come within 200 points of a new all-time high.
Earnings Surprise to the Upside
Shares of Twitter Inc. (TWTR) surged nearly 18% on Tuesday after the social media network topped expectations for user growth and reported better than expected revenues.
Compared with a year ago, Twitter’s revenues climbed more than 18% to $787 million in the first quarter. Net profit more than tripled to $191 million. Unlike in previous quarters, where profitability was achieved by cutting costs, Twitter managed to grow its active user base by a significant margin. By the end of Q1, the platform had 134 million active users, up 6% from the previous three-month period.
Dow blue-chip United Technologies Corp (UTX) posted much better than expected top- and bottom-line results on Tuesday, earning an adjusted $1.91 per share on revenue of $18.37 billion.
Lockheed Martin Corp (LMT) saw first-quarter earnings of $5.99 per share, an increase of 49% year-over-year.
Several major U.S. tech companies are scheduled to report earnings this week, including Facebook Inc. (FB), Amazon.com Inc. (AMZN) and Microsoft Inc. (MSFT).
Bitcoin’s Market Cap Approaches $100 Billion
Bitcoin (BTC), the largest and most influential cryptocurrency, climbed to more than five-month highs Tuesday, as the bulls resumed their two-month relief rally.
The largest cryptocurrency by market cap and trading volume peaked at $5,647.40 before running into some overbought resistance during the North American trading session. Aggregate data from CoinMarketCap show an average price of $5,624.06 for a gain of 4.3%.
For the first time since November, bitcoin’s market capitalization was approaching $100 billion. At the time of writing, the Bitcoin network was $99.3 billion. BTC now accounts for nearly 54% of the total cryptocurrency market capitalization.
Bitcoin’s sudden push to the north helped to engineer a noticeable rally for altcoins and tokens, pushing the total market cap to a new yearly high. By the late afternoon, only four of the top ten alternative assets had reported gains.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via Stockcharts.com.