A series of big earnings from companies like Caterpillar and McDonald’s raised the Dow and drove the S&P 500 to a new high. However, Nasdaq went down due to heavy reliance on tech such as Google parent Alphabet Inc., which just suffered a big loss.
McDonald’s share price went up 5 percent after the fast food franchise experienced the biggest increase in sales around the world in 5 years.
Caterpillar’s stock price increased 4.1 percent after the company’s quarterly report exceeded expectations and increased its outlook for the second time this year.
Nevertheless, Alphabet’s stock price went down 2.6 percent, due to the fact that expenses increased as more searches shift to mobile devices.
The S&P tech index SPLRCT, which has the best performance and earnings from large tech firms, will be under the watch to see if anything can go wrong.
Amazon and Facebook report results later this week, and Apple’s report is due next week.
Investors expect earnings to increase by 8.8 percent in the second quarter, while there was an 8 percent increase at the start of the month, according to Thomson Reuters I/B/E/S.
Advanced Micro Devices, AT&T, Chipotle, and Chubb are some of the main companies that report after the bell closes.
“Investors will have a lot to chew on today as earnings results include at least 12 major companies,” said chief market economist at First Standard Financial, Peter Cardillo.
“We look for another mixed session as the FOMC meeting begins and the health care vote comes into play.”
At 9:37 a.m. ET, the Dow Jones Industrial Average (.DJI) increased by 0.62 percent, 133.09 points, at 21,646.26 and the S&P 500 .SPX increased 0.28 percent, or 7.15 points, at 2,477.06.
The Nasdaq Composite .IXIC decreased by 0.21 percent, or 13.74 points, at 6,397.07.
Eight of the 11 major S&P sectors increased, with the financial index’s .SPSY 1.45 percent increase leading the winners.
The Federal Reserve starts a two-day meeting later in the day in order to discuss monetary policy and the timing of balance sheet reduction which they have long been expecting.
While no increase in rate is expected because of inflation, the central bank’s claim on Wednesday will be parsed for new solutions on the pace of future rate increases. People are also watching the Senate vote on a healthcare bill. Lawmakers are voting on whether to repeal Obamacare or completely discard it.
DuPont went up 2.3 percent due to profit and results exceed estimation.
Eli Lilly went down 3 percent, but 3M went down 4.3 percent after report.
Complicated issues outnumbered decliners on the NYSE by 1,805 to 751. In Nasdaq, 1,429 issues went up and 869 went down.