Stocks rise as investors wait for Fed indices

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Major stock indexes hit record highs on Tuesday as investors assessed the strong earnings season against the risks posed by the Delta coronavirus variant.

The Dow Jones Industrial Average gained 0.5%, or about 165 points, while the S&P 500 gained 0.2%. Both stock market indicators are set to close above all-time highs from last week. The tech-rich Nasdaq Composite fell 0.4%, weighed down by losses in major tech stocks.

The drawing-to-end earnings season has strengthened the case for equities, with analysts expecting S&P 500 company profits to rise 90% in the second quarter from a year earlier, easily outpacing previous projections.

At the same time, many investors are watching with concern the increase in Covid-19 cases in the United States. Some local governments and businesses have reinstated restrictions, raising questions about the economic outlook.

“I think of some really, really amazing and strong earnings growth that has propelled a lot of the stock market up,” said Jim Worden, chief investment officer at Wealth Consulting Group. “I’m also keeping an eye on this Delta variant and how it might affect some businesses, some industries if people are a little shy to go back and spend and travel and all these other things that people wanted to do for a while.”


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