Investing.com – U.S. equities closed at record highs on Tuesday, after a raft of strong corporate earnings results added to the narrative of a strengthening U.S. economy.
In what was quiet day for economic data releases, U.S. equities brushed off a report from market research group Markit that revealed a slow-down in the services sector in February, as strong corporate earnings results were front and center.
Market research group Markit revealed U.S. Services Purchasing Managers’ Index (PMI) eased to 53.9 in February, falling short of analysts’ expectation of an increase to 55.8.
Retail giants’ Home Depot Inc (NYSE:HD) and Wal-Mart Stores Inc (NYSE:WMT) posted quarterly results, which exceeded Wall-Street estimates.
Wall-Mart's shares closed more than 3% higher at $71.45 after the retail giant reported a fiscal fourth-quarter (Q4) earnings per share (EPS) of $1.30, which topped Wall Street estimates of $1.29.
A surge in Wall-Mart’s same-store U.S. sales and growth in e-commerce, were highlighted as key factors that helped Wal-Mart overcome the challenge of a stronger U.S. dollar during Q4.
Meanwhile, in political news, Lt. Gen. H.R. McMaster was confirmed as the new national security advisor. He replaces Michael Flynn, who Trump asked to resign last week.
The Dow Jones Industrial Average closed up 118 points higher at 20,743. The S&P 500 added 0.6% and the Nasdaq Composite rose 0.47%. The Dow and S&P are both up 10% since the U.S. election.
The top S&P 500 gainers included Scripps Networks Interactive Inc (NASDAQ:SNI) up 7.2%, Mondelez International Inc (NASDAQ:MDLZ) up 5.8%; while First Solar Inc (NASDAQ:FSLR) added 5.1%.
Freeport-McMoran Copper & Gold Inc (NYSE:FCX) down 5.2%, Genuine Parts Company (NYSE:GPC) down 3% and Tyson Foods Inc (NYSE:TSN) slumped 3%, were among the worst S&P 500 performers of the session.