Stock Market News For Apr 17, 2018
Zacks Investment Research | Apr 17, 2018 08:41AM ET
U.S. stock markets surged in the first trading day of the week driven by robust first-quarter 2018 earnings results and easing of geopolitical tensions at least for the time being. Monday’s positive market movements were broad-based as all the major indexes closed in the green.
The Dow Jones Industrial Average (DJI) closed at 24,573.04, gaining 0.9% or 212.9 points. The S&P 500 Index (INX) increased 0.8% to close at 2,677.84. The Nasdaq Composite Index (IXIC) closed at 7,156.28, increasing 0.7%. A total of 5.74 billion shares were traded on Monday, higher than the last 20-session average of 7.03 billion shares. Advancers outnumbered decliners on the NYSE by 2.7-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.82 to-1 ratio. The CBOE VIX declined 4.9% and closed at 16.56.
How Did the Benchmarks Perform?
The Dow gained 0.9% with 25 stocks of the 30-stock index closing in the green while five stocks traded in the red. Notably, the blue-chip index closed above its 50-day moving average. Dow breached this psychological barrier for the first time since Mar 13 and closed above it for the first time since Mar 9 indicating positive investor sentiment.
S&P 500 increased 0.8% led by 1.4% gain of the Utilities Select Sector SPDR (XLU) and 1.3% increase of the Materials Select Sector SPDR (XLB). Each of the 11 sectors of the benchmark index ended in positive territory with five of them gaining more than 1%. Notably, S&P 500 returned to positive territory for the year and Monday’s closing was its highest since Mar 22. Moreover, the benchmark index posted 11 new 52-week highs and no new lows.
The tech-heavy Nasdaq Composite also gained 0.7% driven by a sharp increase in technology and telecom stocks. The index recorded 68 new 52-week highs and 36 new 52-week lows.
Strong Earnings Momentum
First quarter earnings results have been showing strong momentum so far. Investors have pinned high hopes on first-quarter 2018 earnings. Total earnings of the S&P 500 index is expected to be up 16.6% from the same period last year backed by 7.5% year-over-year growth in revenues. A big driver of these positive revisions is obviously the direct impact of the tax cuts. (Read More: Zacks Investment Research
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