Skip to main content
The Globe and Mail
Get full access to globeandmail.com
Support quality journalism
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
The Globe and Mail
Support quality journalism
Get full access to globeandmail.com
Globe and Mail website displayed on various devices
Just$1.99
per week
for the first 24 weeks

var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){console.log("scroll");var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))}pencilInit(".js-sub-pencil",!1);

The S&P 500 and the Nasdaq edged up to their highest intraday levels ever on Monday after data showed U.S. consumer spending surged in March, but gains in shares remained muted as investors waited for a fresh batch of earnings reports.

Optimism about a U.S.-China trade resolution and dovish Federal Reserve has been powering the benchmark index, which topped its record high of 2,940.91 hit on Sept. 21 for the first time during the session.

JIM PAULSEN, CHIEF INVESTMENT STRATEGIST, THE LEUTHOLD GROUP, MINNEAPOLIS

“Whether its 2,939 or 2,943 is no big deal but in practice it’s a big deal. It’s going to get a lot of headlines. It’s going to reset resistance levels for technical traders and create more pressure on people waiting for the bear market who have been underinvested.”

Story continues below advertisement

“If it closes at a new high today there’ll be meetings for investors who are bearish and they’ll say ok we’re still bearish but we’ve got to put a little more money to work here.”

“It does create pressure to bring more buyers. Today’s headline augments the fear of missing out. Its going to make the bears less bearish or more worried they’re going to get run over

RICK MECKLER, PARTNER AT CHERRY LANE INVESTMENTS, NEW VERNON, NJ

“It’s really about the administration continuing to hint a trade agreement is near. They’ve consistently told the market they’re going to get there. People don’t want to miss out on the expected rally from that news. That, combined with the momentum that’s already been in place to keep pushing to slightly newer highs, is leaving the market devoid of sellers. Even if you want to sell, you’re probably waiting for that announcement to pick your spot. That’s the major thing.

“Of course earnings have been OK to good. And, when you get that lower inflation number as well, which I think suggests no interest rate rise, there are just not enough reasons right now that investors see to sell stocks.”

RYAN NAUMAN, MARKET STRATEGIST, INFORMA FINANCIAL INTELLIGENCE, ZEPHYR COVE, NEV.

“The record high shows us that investors are paying attention to the better-than-expected earnings, stabilizing economic data and then expectations that the Fed is going to stay on the sidelines.”

“When you get the solid GDP number and the economy continues to expand the way it is right now, then it might just bring the Fed back in the play. However, the muted inflation numbers might be enough to keep the Fed on the sidelines.“

OLIVER PURSCHE, CHIEF MARKET STRATEGIST, BRUDERMAN ASSET MANAGEMENT, NEW YORK

“It’s a positive sign. It’s being driven by the fact that overall earnings have come in somewhat better than most had expected. There was a lot of fear coming into earnings season.”

Story continues below advertisement

“You couple that with the continued expectation that the Fed will stay very dovish, the trade deals that are going to materialize between the U.S. and China and some global data pointing out that, yes, the world’s economies are slowing down, but not as badly as some feared – that’s what’s driving the market at this point. Unless there’s a reversal of those conditions, there’s reason for continued optimism.”

“This is a big earnings week. If earnings come through, we could see the S&P at 3000 this week.”

JOE SALUZZI, CO-MANAGER OF TRADING, THEMIS TRADING, CHATHAM, NJ

“The goldilocks economy is exactly where you are right now. That seems sustainable to me. Overall I think you keep going here,” said Saluzzi citing good earnings, an accommodative Fed and good economic data. “The next catalyst will be the China deal.”

Saluzzi says valuations are not overly inflated.

“We went down too far in December. The sell-off was based on nothing but fear,” he said. “I’m always looking for fundamentals to support the rally and you still have them.”

Related topics

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies