Stocks start mixed as tensions ease
Geopolitical jitters have eased slightly, allowing investors to focus on far less complex matters like improving corporate earnings.
Here's what the markets are buzzing about today:
1. More records in sight: That was fast. The S&P 500 cruised to a new all-time intraday high of 1,987.58 right out of the gate on Wednesday. If the broad index closes above 1,985.59, that will mark its 26th record close this year alone.
The Dow Jones Industrial Average opened lower, dropping about 0.2%. Still, the benchmark is not far from its intraday record of 17,151.56 that was set just last week. Boosted by upbeat tech earnings, the Nasdaq edged 0.24% higher. All three major indexes landed in the green on Tuesday.
Related: Fear & Greed Index still stymied by fear
2. Geopolitical jitters ease: Major indexes across Europe floated higher after EU officials stopped short of imposing tough economic sanctions on Moscow.
'I think some of the macro geopolitical concerns have, at least for the moment, moved back to the back burner,' said Art Hogan, chief market strategist for Wunderlich Securities, referring to violent conflicts in Israel and Ukraine. 'It's a market that's shifted its focus over the last 24 hours back to earnings.'
Still, the relief could be short-lived as Europe demanded Russia's 'full and immediate' cooperation over Ukraine or risk losing access to European finance, defense equipment and energy technology. Also, Ukraine said a pair of its fighter jets were shot down in rebel held territory on Wednesday, underscoring the continued tensions.
Germany's Dax gained 0.4%, while Russia's Micex index slipped 0.3%, taking its losses for the year to nearly 7%.
Asian markets were mainly firmer. Indonesia markets were helped by news that former Jakarta governor Joko Widodo had won the presidential election.
Related: Nothing can ground Delta. Earnings fly higher!
3. Big-name earnings excitement: Wall Street continues to applaud healthy report cards from Corporate America. Not only are the vast majority of companies beating earnings expectations, an impressive chunk are also exceeding revenue forecasts. That's a positive sign for the economy and stock prices.
Shares of Apple jumped 1% a day after the iPhone maker reported a jump in sales and profit for the last quarter. Investors largely overlooked a more cautious tone for the current quarter.
Microsoft rose over 1% even after the tech giant's earnings trailed expectations due to trouble at Nokia. Still, Microsoft managed to beat Wall Street's revenue expectations.
The latest numbers from Delta Air Lines should allow this stock to continue its high-flying ways. The carrier's shares rose about 1% on earnings growth that topped forecasts.
3. Tech stock movers - PepsiCo, Intuitive Surgical, Juniper: Intuitive Surgical raced 12% higher a day after the robotic surgery company posted slumping profits and revenue that managed to exceed estimates.
Related: CNNMoney's Tech30
First Published: July 23, 2014: 9:57 AM ET
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