US stocks rally again to record highs as earnings smash expectations — 'Is it different this time?'

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Better-than-expected earnings unleashed a wave of optimism in the US, sending the S&P 500 to its 'third big high.' Asia and Europe weren't as upbeat.

Coca-Cola, United Technologies, Twitter, Hasbro and Lockheed Martin all delivered earnings beats, sending the S&P up 0.9% to north of 2,934 and the Nasdaq up 1.4% to 8,123. A surge in oil prices also helped energy stocks, sending equities past a high seen in September and January 2018.

"The big question facing investors as the S&P 500 makes its third big high - is it different this time?," said Neil Wilson, chief market analyst for Markets.com."Is there fresh impetus to drive the market higher from here? Do we have the animal spirits?". "Let's be honest, expectations were fairly low coming in to earning season, the market was bracing itself for a pretty poor outpouring of numbers," said Jasper Lawler, head of research at London Capital Group."Yet time and time again we are seeing firms beat this low bar and are providing a strong forward guidance."

The good news didn't translate to Asian equities, as the MSCI's broadest index of Asia Pacific shares outside Japan fell 0.3%. The slide,

 

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'earnings smash expectations'. Whose earnings? The 99%ers'?

When the “is it different this time?” stories start it is time to het your money out because a crash is around the corner

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