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Overnight Markets: S&P 500, Nasdaq hit record highs on upbeat earnings

Overnight Markets: S&P 500, Nasdaq hit record highs on upbeat earnings

The S&P 500 and the Nasdaq closed at record highs on Tuesday after a clutch of better-than-expected earnings reports eased concerns about a slowdown and triggering a broadbased rally.

The Dow Jones Industrial Average added 145 points, or 0.55%, to 26,656, the S&P 500 gained 26 points, or 0.88%, to 2,934 and the Nasdaq Composite added 106 points, or 1.32%, to 8,121.

Earnings continued to dominate the market, with several Dow components such as Coca-Cola, Procter & Gamble Co., United Technologies Corp. and Verizon Communications Inc. releasing quarterly results.

Shares of United Technologies rose 2.3% to lead the Dow higher after the company reported earnings and revenue that beat analyst expectations, while raising expectations for its full-year performance.

Coca-Cola rose 1.7% after its quarterly sales beat estimates, helped in part by strong demand for Coke Zero.

Twitter Inc shares soared 15.6% after the social media company posted better-than-expected quarterly revenue and a surprise increase in monthly active users.

Hasbro Inc rose 14.2% after the toymaker reported a surprise quarterly profit.

Lockheed Martin jumped 5.7% after it reported upbeat quarterly results and lifted its full-year profit forecast on strong demand for its missiles and fighter jets.

Procter & Gamble Co fell 2.6% and was the biggest drag on the market after reporting a decline in its third-quarter operating margin.

On the economic front, new-home sales in March rose 4.5% to a seasonally adjusted annual rate of 692,000, the Commerce Department said.

The S&P has risen 17% so far this year, with help from a dovish Federal Reserve and hopes of a US-China trade resolution as well as the upbeat start to the first-quarter earnings season.

In Asia, shares mostly traded higher on Wednesday in morning session after the S&P 500 and Nasdaq closed in record high territory overnight on Wall Street.

The Nikkei 225 in Japan added 0.39%, while the Topix index gained 0.13%. Meanwhile, Australia’s ASX 200 advanced 1.08%. In South Korea, the Kospi fell fractionally.

China’s Shanghai Composite Index was trading 0.30% lower, while in Hong Kong, the Hang Seng Index was flat.

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