The S&P 500 gained 0.7 percent and traded above 2,800 for the first time. Real estate and health cares were the best-performing sectors in the index. The Nasdaq composite advanced 0.8 percent and also hit a record.
“The boring stock market of 2017 has turned on the burners two weeks into the new year,” said Frank Cappelleri, executive director at Instinet, noting the S&P 500 was on track to post its first monthly gain of more than 4 percent since March 2016.
“Regardless if the [S&P 500] finishes January with a 4% gain or not, this just tells us once again that strength does, in fact, beget more strength. It also means we shouldn’t cast doubt on the uptrend simply because the advance has gained steam recently,” Cappelleri said in a note.
UnitedHealth posted better-than-expected earnings and sales, sending the stock up 2.5 percent. Citigroup reported adjusted earnings that surpassed estimates, while revenue came in line with expectations. Citigroup shares climbed 1 percent.
Earnings season is off to a strong start thus far. Of the S&P 500 companies that had reported as of Friday, 69 percent have surpassed earnings-per-share estimates while 85 percent have beaten expectations on the top line, according to FactSet.
“It’s all about earnings right now,” said Peter Cardillo, chief market economist at First Standard Financial. “Improvement in the quality of earnings and optimistic outlooks are driving this market higher. It’s momentum feeding on itself.”
