“We’ve got great consumer sentiment and inflation is still contained. But as rates go up, and we do get risk up in the system.”
With first-quarter results pouring in, profits are already turning out to be much stronger-than-expected, according to Thomson Reuters I/B/E/S.
Earnings at S&P 500 companies are expected to have risen 19.9 percent in the quarter, compared with 18.6 at the start of the season, making it the strongest quarter in seven years.
At 11:32 a.m. EDT the Dow Jones Industrial Average was up 38.09 points, or 0.16 percent, at 24,501.03, the S&P 500 was up 10.25 points, or 0.38 percent, at 2,680.39 and the Nasdaq Composite was up 39.50 points, or 0.55 percent, at 7,185.63.
This week, 181 S&P 500 companies are scheduled to report including some of the technology heavy-hitters like Facebook, Microsoft, Amazon and Intel. Alphabet reports after markets close on Monday.
The S&P technology index was up 0.6 percent, leading gains among the 11 major S&P sectors.
Merck rose 1.4 percent after Goldman Sachs upgraded the stock to “buy”.
Caterpillar also rose 0.9 percent after Citigroup upgraded to “buy”.
Shares of aluminum companies fell after the U.S. opened the door to sanctions relief for Russian aluminum giant United Company Rusal Plc. Alcoa tumbled 11.5 percent and Arconic’s 3.3 percent drop made it the biggest loser on the S&P.
Advancing issues outnumbered decliners by a 1.24-to-1 ratio on the NYSE and by a 1.26-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and 12 new lows, while the Nasdaq recorded 58 new highs and 41 new lows.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)