By Christine Idzelis and William Watts
The Dow Jones Industrial Average and S&P 500 indexes ended at all-time highs Tuesday, notching back-to-back closing records, as U.S. stock benchmarks extended their winning run as investors faced an onslaught of corporate earnings reports.
What did major stock benchmarks do?
The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -2.53% edged up 15.73 points, or less than 0.1%, to close at a record 35,756.88, after rising to an all-time intraday high of 35,892.92 in earlier activity.
The S&P 500 /zigman2/quotes/210599714/realtime SPX -2.27% rose 8.31 points, or 0.2%, to finish at a new peak of 4,574.79, after hitting an intraday record, at 4,598.53.
The Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -2.23% advanced 9.01 points, or 0.1%, to end at 15,235.71. The tech-heavy index traded as high as 15,384, briefly topping its closing record of 15,374.33 from Sept. 7.
On Monday, both the Dow and the S&P 500 ended at record highs, with the Nasdaq Composite closing within 1% away from a new high.
What drove the market?
Investors pushed stock benchmarks higher Tuesday as they continued to digest company earnings reports for the third quarter.
“Investors are shrugging off concerns about inflation. Instead, they are focusing on the corporate earnings season, which continues to surprise on both side of the Atlantic,” said Fawad Razaqzada, market analyst at ThinkMarkets, in a note.
The S&P 500 index has advanced for nine of the last 10 sessions as third-quarter earnings reports have largely topped expectations.
“Companies are still able to put through a lot of their prices increases,” said Paul Nolte, a senior portfolio manager at Kingsview Investment Management, in a phone interview Tuesday. “So far, it seems the consumer is taking higher prices in stride.”
Tuesday’s earnings wave included General Electric Co. /zigman2/quotes/208495069/composite GE -4.29% , 3M Co. /zigman2/quotes/205029460/composite MMM -1.19% , and, after the market close, Google parent Alphabet Inc. /zigman2/quotes/202490156/composite GOOGL -2.69% and Microsoft Corp. /zigman2/quotes/207732364/composite MSFT -2.44% . Social-media giant Facebook Inc. /zigman2/quotes/205064656/composite FB -2.33% fell 3.9% after it surpassed third-quarter earnings estimates but issued a revenue outlook below Wall Street forecasts.
In economic data released Tuesday, the S&P CoreLogic Case-Shiller Home Price Index showed that home prices increased nationally 19.8% from a year ago in August, roughly in line with the previous month’s increase. The separate 20-city index, which measures price appreciation among a group of major metropolitan areas across the country, showed a 19.7% year-over-year gain, down from a revised 20% annual gain the month before.
Meanwhile, U.S. new-home sales increased 14% to an annual rate of 800,000 in September , the government said Tuesday. The median forecast of economists polled by MarketWatch had been for new home sales to come in at an annual rate of 760,000 for September.
“The housing market is strong,” said Eric Winograd, senior economist at AllianceBernstein, in a phone interview Tuesday. “Interest rates are very low,” he said, while “housing demand is very high.”