U.S. stocks rose to fresh highs on Monday, with the Dow Jones Industrial Average notching its ninth consecutive record close on the back of double-digit earnings from Wall Street companies.
Record-Setting Rally Continues
The 30-company Dow Jones index climbed 25.61 points, or 0.1%, to 22,118.42 on Monday. The blue-chip index has risen in each of the last ten sessions.
The broader S&P 500 Index also participated in the record-setting rally, climbing 4.08 points, or 0.2%, to 2,480.91. Seven of 11 sectors finished in positive territory, with consumer staples and technology leading the gains.
A strong tech sector lifted the Nasdaq Composite Index to higher ground. It rose 32.21 points, or 0.5%, to 6,383.77.
U.S. equity futures were slightly lower in overnight trading, as were futures on the Euro Stoxx 50, FTSE 100 and DAX 30.
Wall Street’s Double-Digit Earnings
With the bulk of S&P 500 companies having reported their earnings for the past quarter, the results have been much better than expected. According to FactSet, blended earnings are up 10.1% year-over-year. That is based on 84% of companies having reported so far. That puts S&P 500 companies on track for their highest year-over-year growth since 2011.
At this time last year, Wall Street was mired in a so-called earnings recession that would stretch for five consecutive quarters. The recession came to an abrupt end in Q3 2016, when blended earnings unexpectedly rose.
Trump’s Approval Rating Sinks at 200-Day Mark
Strong quarterly results have shielded equities from the political turmoil that has engulfed the Trump Administration since inauguration. According to a CNN poll conducted by SSRS, 56% of Americans now disapprove of their president’s performance.
Although CNN has come under scrutiny for its apparent bias against the president, optimism in the Trump Administration has gradually faded amid Republican infighting and a perceived lack of progress on various legislative fronts. That disappointment hasn’t been reflected in equity prices, which have relied on the ‘Trump bump’ since election day.