S&P 500 jumps to record high on strong earnings, trade-deal progress

The S&P 500 hit a record high on Monday, breaking above an all-time high set over the summer as investors cheered strong earnings and progress on U.S.-China trade.

The S&P 500 rose 0.6% to trade above 3,027.98, the record set on July 26. The Dow Jones Industrial Average gained 0.7%, or 186 points. The Nasdaq Composite climbed 0.7%.

President Donald Trump called in a tweet the move to record highs a “big win for jobs, 401-K’s, and, frankly, EVERYONE.”

After hitting a new high on July 26, fears of an economic recession led to a sharp August sell-off. That month, the S&P 500 dropped 1.8%. The index struggled through September but has rebounded strongly in October. It is now up more than 6% from that August low.

Last week’s 1.2% rise set the stage for a potential S&P 500 upside breakout, said Craig Johnson, chief market technician at Piper Jaffray.

“The technical backdrop improved last week as the SPX finally distanced itself from the magnetic 3,000-point level,” Johnson said. “A close above 3,026 will validate a record high breakout and likely open the door to a new leg higher.”

https://www.cnbc.com/2019/10/28/stock-market-investors-monitor-busiest-week-of-earnings-season.html