Optimism reigns as stocks continue to shatter records

Stocks roared to another day of record highs, climbing steadily through the day and finishing near session highs.

The Dow, S&P 500 and Nasdaq added between 1.6% and 2% for the week, increasing their 2018 gains to 4.2%-5.2%.

The Dow"s 4.3% YTD gain and the S&P"s 4% rise mark the best start to a year since 2003, and the Nasdaq"s 5% advance represents the strongest start since 2004.

“The economy is looking good, numbers look good, and companies are making money. This quarter may be a little messy because of the tax bill, but there’s so much optimism, so much enthusiasm about earnings,” says Michael Matousek, head trader at U.S. Global Investors.

Consumer discretionary (+1.3%) was the top-performing group, with Lowe"s (+5.4%) setting the pace after reports that investor D.E. Shaw has build an active stake in the company.

The energy sector (+1%) rallied again amid another strong day for crude oil, as WTI futures jumped 0.6% to $64.21/bbl, and industrials (+0.9%) were led by Boeing, which rose 2.5% to another record high.

U.S. Treasury prices edged lower after inflation data beat expectations, pushing the yield on the two-year note 4 bps higher to 2.001%, surpassing 25 for the first time since September 2008; the benchmark 10-year yield also jumped 4 bps to 2.55%.

Also, the euro surged 1.3% to a three-year high against the U.S. dollar following the inflation news.

Nguồn: seekingalpha.com