Stocks hit record highs ahead of flurry of tech earnings

CNBC Television published this video item, entitled “Stocks hit record highs ahead of flurry of tech earnings” – below is their description.

Cliff Hodge, Chief Investment Officer at Cornerstone Wealth, predicts we’re about to see a period of slowing growth and slowing inflation. One company to invest in now to weather the coming slowdown is Visa, Hodge says. “It’s a cash machine,” he says of Visa. Mark Avallone, President of Potomac Wealth Advisors, predicts Netflix stock will be popular again this winter. Subscribe to CNBC PRO for access to investor and analyst insights on tech and more: https://cnb.cx/3dIH56N

The S&P 500 hovered around its record on Monday ahead of a busy week of earnings reports from technology’s heaviest hitters.

The broad equity benchmark traded near the flatline after touching an all-time high. The Dow Jones Industrial Average rose 20 points. The tech-heavy Nasdaq Composite gained 0.2% to reach a new intraday high.

One of the busiest weeks of earnings reports is on deck, with Tesla kicking it off after the closing bell. Last week, CEO Elon Musk said the automaker would likely start accepting bitcoin for vehicle purchases again. Shares of the electric vehicle maker rose 2.4%.

Big tech giants Apple, Alphabet and Microsoft are all set to report on Tuesday, and Google, Facebook, and Amazon will also report later in the week.

The second-quarter reporting season has been stronger than expected, providing a support for equities as they climb back into record-high territory. So far, 88% of S&P 500 companies have reported a positive EPS surprise, according to FactSet. If 88% is the final percentage, it will mark the highest percentage since FactSet began tracking this metric in 2008.

“U.S. equities remain resilient as they continue to climb the wall of worry into record-high territory,” said Craig Johnson, chief market technician at Piper Sandler. “An impressive start to earnings season has kept the buy the dip sentiment alive and offset concerns over peak growth and rising new cases of coronavirus.”

All three of the major averages finished at record closing highs last week after the market tumbled at the start of the week on concerns about the spread of the delta variant of Covid and how it would potentially hinder the economic recovery.

The uncertainty briefly sent bond yields lower, and investors jumped into tech stocks. Both bonds and equities rebounded quickly by the end of the week.

“Investors are concerned about the impact on economic growth from the Delta variant, but the new strain should not pose a major market risk,” David Kostin, Goldman Sachs’ head of U.S. equity strategy, said in a note. “Vaccinations, equity demand from households and corporations, and attractive relative valuations will support equity inflows and prices.”

Also on Monday, bitcoin surged above $39,000 for the first time since mid-June as sentiment turned bullish following a recent sell-off that pushed the cryptocurrency below $30,000.

Meanwhile, on the data front, sales of new U.S. single-family homes dropped unexpectedly in June, falling 6.6% to a seasonally adjusted annual rate of 676,000 units, the Commerce Department said on Monday. Economists polled by Dow Jones had expected new home sales to increase to 795,000 units in June.

Shares in Hong Kong suffered heavy losses during the Asia trading session on Monday, with the Hang Seng index in the city plummeting 4% as the government’s crackdown on tech intensified.

Investors will be watching the Federal Reserve’s two-day policy meeting, beginning Tuesday. The Federal Open Market Committee and the Board of Governors are expected to issue a statement on the stance of monetary policy Wednesday. On Thursday, the Commerce Department will report second-quarter GDP data.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online

Get the latest news: http://www.cnbc.com/

Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC

Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC

Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC

Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC

#CNBCTV

CNBC Television YouTube Channel

Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.

About This Source - CNBC Television

CNBC is an American pay television business news channel, which primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

As of February 2015, CNBC is available to approximately 93,623,000 pay television households (80.4% of households with television) in the United States.

Recent from CNBC Television:

  • Two boys create their own mini golf course
  • Fire crews rush to save giant sequoia trees
  • Movies now have their own museum
  • In This Story: Bitcoin

    Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software. Bitcoin was the first decentralized cryptocurrency.

    4 Recent Items: Bitcoin

  • Ray Dalio on Evergrande, China, Bitcoin and the Fed
  • Robinhood Quietly Testing Crypto Wallet as Users Clamor for It
  • Bitcoin takes a tumble amid market sell-off
  • Keiser Report | XCheck Your Privilege | E1752
  • In This Story: COVID-19

    Covid-19 is the official WHO name given to the novel coronavirus which broke out in late 2019 and began to spread in the early months of 2020.

    Symptoms of coronavirus

    The main symptoms of coronavirus are:

    • a persistent new cough (non productive, dry)
    • a high temperature (e.g. head feels warm to the touch)
    • shortness of breath (if this is abnormal for the individual, or increased)

    Latest News about Covid-19

    Below are stories from around the globe related to the 2020 outbreak of novel Coronavirus – since the WHO gave the Covid-19 naming. Most recent items are posted nearest the top.

    5 Recent Items: COVID-19

  • ACT records 17 new COVID-19 cases | ABC News
  • How to tackle Covid-19 vaccine hesitancy among those around you
  • COVID-positive TV crew member in Byron Bay charged with health order breaches | ABC News
  • Bill Burr Tackles Hoax COVID Cures and Non-Binary Mr. Potato Head
  • COVID-19 origins: Rumor of Chinese scientists deleting sequencing data cleared up
  • In This Story: Cryptocurrency

    A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

    Bitcoin is the first decentralized cryptocurrency. Since the release of bitcoin, other cryptocurrencies have been created.

    4 Recent Items: Cryptocurrency

  • ‘Bloomberg Surveillance: Early Edition’ Full Show (08/10/2021)
  • Coinbase President: Infrastructure Bill Is a ‘Setback’
  • AMC CEO on outlook: AMC will get quite involved in cryptocurrency
  • LIVE: CNBC TechCheck’s Deirdre Bosa chats with FalconX CEO Raghu Yarlagadda — 8/10/21
  • In This Story: Elon Musk

    Elon Reeve Musk FRS is a business magnate, industrial designer, engineer, and philanthropist. He is the founder, CEO, CTO and chief designer of SpaceX; early investor, CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-founder of Neuralink; and co-founder and initial co-chairman of OpenAI.

    5 Recent Items: Elon Musk

  • Global National: Sept. 19, 2021 | Leaders appeal to voters in final hours before election day
  • First civilians aboard SpaceX rocket return to Earth
  • SpaceX’s 1st all-civilian crew provides update from orbit | LIVE
  • Morgan Stanley auto analyst presents his bull and bear case on Tesla
  • Why Ron Baron Is a Big Believer in Elon Musk
  • In This Story: Hong Kong

    Hong Kong, officially the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR), is a metropolitan area and special administrative region of the People’s Republic of China on the eastern Pearl River Delta of the South China Sea. With over 7.5 million residents of various nationalities in a 1,104-square-kilometre (426 sq mi) territory, Hong Kong is one of the most densely populated places in the world.

    Hong Kong became a colony of the British Empire after the Qing Empire ceded Hong Kong Island at the end of the First Opium War in 1842. The colony expanded to the Kowloon Peninsula in 1860 after the Second Opium War and was further extended when Britain obtained a 99-year lease of the New Territories in 1898. The whole territory was transferred to China in 1997. As a special administrative region, Hong Kong maintains separate governing and economic systems from that of mainland China under the principle of “one country, two systems”.

    3 Recent Items: Hong Kong

  • More than a thousand teenagers in Bangkok receive Pfizer-BioNTech vaccinations
  • The Point: What does the Election Committee polls mean for Hong Kong?
  • It’s going to be a buying opportunity: Art Hogan
  • Leave a Comment

    We don't require your email address now, just your name. BUT, if you do add it, you may be notified if there are replies to your comment. Please make respectful comments, which add value, and avoid personal attacks on others. Comments failing to adhere to these guidelines will not be published.