Stocks rise to record high as corporate profits keep rising

FILE - This Tuesday, Oct. 25, 2016, file photo shows the New York Stock Exchange, in lower Manhattan. Stock markets turned higher on Tuesday, July 25, 2017, as investors monitored a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in U.S. politics kept most indexes trading within a narrow range. (AP Photo/Mary Altaffer, File) FILE - This Tuesday, Oct. 25, 2016, file photo shows the New York Stock Exchange, in lower Manhattan. Stock markets turned higher on Tuesday, July 25, 2017, as investors monitored a slew of corporate earnings reports. A meeting of the Federal Reserve and caution over potential twists and turns in U.S. politics kept most indexes trading within a narrow range. (AP Photo/Mary Altaffer, File)

By Associated Press July 25, 2017 2 min read

U.S. stock indexes returned to records Tuesday as corporate profits continue to come in better than analysts expected.

McDonald’s and Caterpillar were among the big companies that reported healthier-than-forecast results. Sharp moves higher in prices for oil, metals and other commodities also helped lift companies that produce energy and raw materials. That more than offset losses for health care companies and stocks that pay relatively big dividends, which were hurt by a rise in Treasury yields.

The Standard & Poor’s 500 rose 7.17 points, or 0.3 percent, to an all-time high of 2,477.08. It was the first gain for the index in four days.

The Dow Jones industrial average rose 100.26, or 0.5 percent, to 21,613.43. The Nasdaq composite added 1.37 points, or less than 0.1 percent, to 6,412.17, and the Russell 2000 index of small-cap stocks gained 12.33, or 0.9 percent, to 1,450.39. Both the Nasdaq and Russell set records.

“There’s a lot of hope built into the market at current levels,” said Rob McIver, portfolio manager at the $6.3 billion Jensen Quality Growth fund. “We’re cautioning investors to be cautious and conservative.”