The S&P 500 and Nasdaq both reached new all-time highs overnight, after delivering a rare negative week, adding 0.2% and 0.9% on Monday.
Energy and consumer discretionary groups drove the rally with smaller companies, represented by the Russell 2000 index, outperforming larger names.
A significant week of earnings results lies ahead, which is likely to set the tone for the remainder of the quarter, alongside an economic release that experts believe will show the US economy grew at a rate of 6.9% in the quarter.
Bank of America (NYSE: BAC) has indicated that mentions of ‘inflation’ in earnings results has tripled since this time last year, suggesting investors need to ‘buckle up’ as higher costs feed through the economy.
Tesla reports strongly
Tesla (NASDAQ: TSLA) added 1.2% during the session ahead of its after-market earnings release. The company reported earnings of US$438 million in the March quarter, with sales up 74% to US$10.4 billion from just US$6.0 billion a year ago.
According to the announcement, the Model 3 was the best selling premium sedan in the world in the first quarter of CY2021 – beating the BMW 3 Series and Mercedes E-Class.
Market movers
Here’s how other popular US stocks started the week:
- American Express (NYSE: AXP) up 4.2%
- DocuSign (NASDAQ: DOCU) up 4.2%
- Atlassian (NASDAQ: TEAM) up 2.5%
- Amazon (NASDAQ: AMZN) up 2.0%
- Procter & Gamble (NYSE: PG) down 2.0%
- Pepsi (NASDAQ: PEP) down 1.7%
- Etsy (NASDAQ: ETSY) down 4.4%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to edge higher when the market opens on Monday. For all the latest, check out Rask Media’s daily ASX 200 morning report.