S&P 500, Dow hit new highs with heavy week of earnings on tap

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The Dow and S&P 500 notched record closing highs amid ongoing earnings optimism and a mega order for electric car maker Tesla

This week, 165 components of the S&P 500 are expected to post quarterly results, according to Refinitiv data. Analysts expect earnings at S&P 500 companies to grow 34.8% year-on-year for the third quarter.

Investors are also assessing how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures to sustain growth. Of the 119 companies in the S&P 500 that have reported earnings through Monday morning, 83.2% have topped analysts' expectations. "Earnings have been good so far, there is always positive vibes in earnings because you have warnings before it starts of course. But for some supply-chain problems, generally the economy was strong so people were positioning ahead of earnings," said Hatfield.lost 2.83% after the Huggies diaper maker cut its 2021 profit outlook due to higher input cost inflation.

Advancing issues outnumbered declining ones on the NYSE by a 2.01-to-1 ratio; on Nasdaq, a 1.79-to-1 ratio favored advancers. The S&P 500 posted 77 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 150 new highs and 80 new lows.More from ReutersSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

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