The S & P 500 reaches a new intra-day high after a week of economic and profit data

Inventories rose Monday morning earlier this week, with economic data releases and several quarterly reports from leading companies.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) rose by 0.1%, or 2.94 points to 21:43 (ET), breaking a new intraday record after surpassing the previous record of 2,940.91 by September 21st. "data-reactid =" 12 "> The S & P 500 (^ GSPC) rose 0.1%, or 2.94 points, to 9:43 am (ET), reaching a new intraday record after surpassing the previous record of 2 940.91 reached 21 September.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the index, the big techno-heavy Sector communications ahead of Alphabet (GOOG& nbsp;GOOGL) quarterly results after market close. "data-reactid =" 13 "> Within the index, the communications sector, very techno-heavy, is ahead of the quarterly results Alphabet (GOOG, GOOGL) after the close of the markets.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Dow (DJI) lost 0.01%, or 3.55 points, while the Nasdaq (^ IXIC) increased by 0.05% or 4.94 points. "data-reactid =" 14 "> The Dow (^ DJI) slipped 0.01% or 3.55 points, while the Nasdaq (^ IXIC) rose 0.05% or 4.94 points.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Results far above expectations – coupled with strong reading on & nbsp;First quarter GDP& nbsp; – sent the S & P 500 and Nasdaq at the close of Friday's session to record highs. "data-reactid =" 15 "> Overall higher-than-expected profits – combined with a solid first quarter GDP reading – sent The S & P 500 and Nasdaq will close Friday's session at record highs.

Companies representing more than half of the market capitalization of the S & P 500 have released their results for the first quarter, their earnings exceeding expectations by 6.6% and 77% of them surpassing their final estimates, according to an analysis of Jonathan Golub, chief strategist of US equities. with Credit Suisse. These figures compare to 5.4% and 71% over the past three years, he added.

Investors have taken into account their low expectations at the start of this earnings season, anticipating a year – on – year decline in corporate profits when the corporate tax cut of Trump administration began to fade and that the outlook for international economies and trade eased.

While expectations were already skewed, companies that did not meet the expectations of the first quarter were disproportionately punished by investors: shares of companies that missed estimates of net income and net earnings a delay of 4.1% on average in the wider market, while companies have exceeded expectations by 1.1%, according to Golub.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Monday afternoon, Google-parent company Alphabet (GOOG& nbsp;GOOGL) will report quarterly results as well as MGM Resorts (MGM), NXP Semiconductors (NXPI), Tenet Healthcare (THC), Western Digital (WDC). "data-reactid =" 19 "> Monday afternoon, Alphabet (GOOG, GOOGL), parent company of Google, will publish its quarterly results, as well as MGM Resorts (MGM), NXP Semiconductors (NXPI), Tenet Healthcare (THC) , Western Digital (WDC).

At the same time, reports reporting the state of the US economy will be the focus this week. The US Federal Reserve will release its latest policy statement on Wednesday and the Bureau of Economic Analysis will release the jobs report for April. Data Abroad will also be useful in providing a more complete picture of the global economy, with the Bank of England about to release its own monetary policy decision on Thursday and the Purchasing Managers Index of China released Tuesday.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Over the weekend, the profits industrial enterprises in China& nbsp; – The world's second largest economy – registered a 13.9% increase in March over the previous year, according to the National Bureau of Statistics. This reversed the 14% drop in industrial profits in the first two months of the year and hinted at the positive impact of some of the & nbsp;the stimulus efforts recently implemented in the country& nbsp; to help its main manufacturing sectors. "data-reactid =" 21 "> Over the weekend, profits of industrial enterprises in China – the world's second-largest economy – rose 13.9% in March compared with the previous year, according to the report. same source, canceled out a 14% drop in industrial profits in the first two months of the year combined and foreshadowed the positive effect of the country's recently implemented stimulus efforts to help its major manufacturing sectors.

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Market participants will be informed of the Federal Open Market Committee's policy statement on Wednesday to gauge members' responses to recent data on the national economy, which grew 3.2% much faster than expected in the first quarter . However, the data indicates that inflation remains below the 2% target of bankers, while the unemployment rate remains low.

Starting Monday morning, the tool closely monitored by FedWatch of the CME Group has shown the markets a 98% probability that the Fed will leave rates unchanged in the current range of 2.25% to 2.5%. He also showed a 2% probability that central bankers reduce their rates by 25 basis points.

The 10-year Treasury yield and the US dollar remained virtually unchanged before the Fed's monetary policy decision. The yield on the 10-year Treasury bill rose less than 1 basis point to 2.511% from Monday morning, while the dollar index was holding slightly above 98.

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