S&P 500 Nears Record High as Brent Crude Falls to $99.25
The S&P 500 rose 0.1% to sit 0.3% below its all-time high. Brent crude settled at $99.25, down 1.1% for the day.
Key points
- S&P 500 rose 0.1% to sit 0.3% below its all-time high on Tuesday.
- Brent crude settled at $99.25 per barrel, down 1.1% from the previous close.
- Analysts forecast S&P 500 companies will report nearly 29% profit growth this quarter.
The S&P 500 index gained 0.1 percent on Tuesday to sit 0.3 percent below its all-time high. This movement followed a fifth consecutive day of declining oil prices and bond yields.
Brent crude settled at 99.25 dollars per barrel, a drop of 1.1 percent for the session. The price remains well above the 72 dollars seen before the conflict in Iran began.
Corporate Earnings Drive Market Momentum
AutoZone shares climbed 4.3 percent after the retailer reported profits higher than analyst estimates. The company noted a difficult start to the quarter but expects sales growth ahead.
Thor Industries stock rose 4.7 percent despite a muted outlook from its CEO. The firm cited high fuel costs and interest rates as pressures on customer budgets.
Earnings Growth Expectations Remain Strong
Analysts forecast S&P 500 companies will report 29 percent profit growth for the third quarter. This would mark the third consecutive quarter of growth exceeding 25 percent.
Historical data suggests stock prices tend to follow the trajectory of corporate profits over time. Strong earnings results are supporting the market’s push toward new record levels.
On Holding Boosts Share Value
On Holding shares jumped 8.9 percent after the company unveiled new financial targets. It also approved a plan to buy back up to 1 billion dollars of stock.
These buybacks send cash directly to investors and boost per-share performance metrics. The move signals management confidence in the firm’s future cash flow generation.
