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A dealer works on the ground of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, April 23, 2018.
“There are two things driving the market: Earnings and the news flow out of Washington,” mentioned Randy Frederick, vp of buying and selling and derivatives on the Schwab Center for Financial Research. He famous that earnings could also be at the moment overshadowing the information out of DC.
“The earnings reports have been good thus far,” Frederick mentioned. “I see no reason why that wouldn’t continue.”
Of the S&P 500 corporations which have reported up to now, 81 p.c have reported better-than-expected earnings, in keeping with FactSet.
Stocks additionally obtained a lift as rates of interest slipped from multiyear highs. The benchmark 10-year Treasury observe fell from a greater than four-year excessive to beneath three p.c after the European Central Bank saved rates of interest unchanged and reaffirmed its stimulative financial coverage stance.
ECB President Mario Draghi mentioned “underlying strength” within the euro zone’s economic system continued to underpin the financial institution’s confidence regardless of indicators of “moderation” in latest weeks.
He added an “ample degree of monetary stimulus” remained essential over the approaching months.
In financial information, U.S. sturdy items orders rose 2.6 p.c in March, way over the anticipated 1.6 p.c acquire. Meanwhile, weekly jobless claims totaled 209,000 final week, beneath a forecast of 230,000.
—CNBC’s Sam Meredith contributed to this report.