10-3-17 3:51 PM EDT | Email Article

By Anneken Tappe and Ryan Vlastelica

Vehicle sales come in better than expected, help add to market optimism

U.S. stock benchmarks clambered deeper into record territory Tuesday, setting the S&P 500 on course for its sixth gain in a row, as investors took their cues from upbeat data, including a report on vehicle sales.

What stock benchmarks are doing

The Dow Jones Industrial Average rose 85 points, or 0.4%, to 22,643. The S&P 500 rose 5 points to 2,534, an increase of 0.2%.

The Nasdaq Composite Index rose 13 points, or 0.2%, to 6,529.

The S&P has gained for five consecutive trading days, its longest winning streak since a six-session advance that ended Sept. 1. The Dow has advanced in four straight sessions, while the tech-heavy Nasdaq has risen for five sessions in a row.

The Russell 2000 , meanwhile, was trading little changed at 1,509, after hitting an all-time high in early trading. The small-cap index has moved in fits and starts in recent trade but has trounced its larger-benchmark peers over the past 30 days, up nearly 7%, compared with a 3% rise for the Dow and a 2.3% gain for the S&P in that same period.

What are driving markets?

Stocks have been supported by some strong economic data, including the recent ISM manufacturing survey (http://www.marketwatch.com/story/key-yardstick-of-us-manufacturers-touches-highest-level-since-2004-ism-finds-2017-10-02) for September, as well as hopes for tax-cut legislation. However, there are lingering concerns that the market's record advance--the S&P is up 13% year to date, the Dow is on track for a nearly 15% return thus far this year, while the Nasdaq has gained more than 20%--has been overdone. That's especially as the Federal Reserve increases borrowing costs.

What strategists are saying

Which stocks are in focus?

Shares in MGM Resorts International(MGM) shed 0.1% after falling 5.6% Monday (http://www.marketwatch.com/story/mgm-resorts-stock-falls-5-premarket-after-mandalay-bay-shooting-2017-10-02) in the wake of the mass shooting at the company's Mandalay Bay property in Las Vegas.

Home builder Lennar Corp. (LEN) rose 4.4% after better-than-anticipated quarterly results (http://www.marketwatch.com/story/lennars-stock-set-for-rally-after-profit-and-sales-beat-expectations-2017-10-03).

See:Las Vegas shooter Paddock had 42 guns and a 'bump stock' (http://www.marketwatch.com/story/las-vegas-shooter-paddock-had-42-guns-and-a-device-enabling-firing-at-an-automatic-rate-2017-10-03)

Gun-maker stocks such as Smith & Wesson parent American Outdoor Brands Corp.(AOBC) and Sturm, Ruger & Co. Inc. (RGR) also could see another active session after rallying Monday (http://www.marketwatch.com/story/gun-maker-stocks-surge-after-mass-shooting-in-las-vegas-2017-10-02). They often gain when traders think stricter regulations are coming, as sales can get a lift ahead of any change. Shares of American Outdoor gained 2.8% and Sturm rose 2%.

What are the data saying?

Major auto makers posted better-than-expected sales gains in September amid heavier consumer discounts and demand to replace hurricane-damaged vehicles, giving the industry relief from a protracted period of (http://www.marketwatch.com/story/gm-ford-toyota-post-sharp-sept-sales-gains-2017-10-03-144851637)declining results.

General Motors Co.(GM) rose 3% after it reported U.S. sales growth of 12% (http://www.marketwatch.com/story/gms-stock-shoots-up-to-record-high-after-september-sales-report-2017-10-03), with the stock hitting a record in early trading.

Ford Motor Co.(F) was up 2% after it posted sales growth of 8.7%. The auto maker was also in focus as new CEO Jim Hackett is due to provide an update on the company's progress (http://www.marketwatch.com/story/new-ford-chief-says-ready-to-tinker-under-the-hood-2017-09-30) at an investor meeting.

Fiat Chrysler's (FCA.MI) September numbers fell by 10% year-over-year (http://www.marketwatch.com/story/fiat-chryslers-us-september-sales-fall-with-sharp-declines-in-jeep-chrysler-and-dodge-brand-sales-2017-10-03), thanks to declines in its Jeep, Chrysler and Dodge brands. Its shares last traded slightly weaker, down 0.3% from yesterday.

Shares in Tesla Inc.(TSLA) pared previous losses and rose almost 1.4%. Late Monday, news came that third-quarter production for the electric car maker's Model 3 sedan was lower than anticipated, due to manufacturing bottlenecks (http://www.marketwatch.com/story/tesla-model-3-hit-by-production-bottleneck-that-slowed-initial-deliveries-2017-10-02), causing Tesla's shares to take a dive.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

What other assets are doing

European stock markets (http://www.marketwatch.com/story/european-stocks-pause-for-breath-after-8-day-winning-run-2017-10-03) traded higher on Tuesday, adding on from an eight-day winning streak. Asian equity markets largely closed higher (http://www.marketwatch.com/story/hang-seng-nikkei-lead-market-gains-in-asia-2017-10-02), though some bourses remained closed for holidays.

Oil futures settled at a two-week low, (http://www.marketwatch.com/story/oil-slips-further-on-concerns-about-higher-supply-2017-10-03) while gold futures booked their third straight decline (http://www.marketwatch.com/story/gold-extends-retreat-as-bond-yields-stocks-rise-2017-10-03), as the ICE U.S. Dollar Index was little changed (http://www.marketwatch.com/story/dollar-holds-ground-at-six-week-highs-2017-10-03).

--Victor Reklaitis contributed to this article

 

(END) Dow Jones Newswires

October 03, 2017 15:51 ET (19:51 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Add a Comment

Try Premium Membership today. Your first 14 days are free of charge. Start my Premium Membership Trial.
Sponsored Links
Buy a Link Now
Sponsor Center
Content Partners