The S&P 500 touched a new record high early Monday as investors remain optimistic about the economy and corporate earnings.
The broad market gauge briefly rose above its previous record set on Jan. 15. The Dow Jones industrial average and the Nasdaq were also higher in early trading.
Investors welcomed comments from global finance officials, who emphasized stimulating economic growth over austerity.
The G20 — the world’s 19 richest nations and the European Union — pledged to install policies that will add $2 trillion to the world economy over the next five years. The group committed to “significantly raise global growth,” according to a statement following a weekend meeting in Australia.
While the U.S. economy has shown some signs of weakness, many economists say major storms in December and January distorted the data. This week, investors will sort through reports on housing, consumer spending and the government’s second reading of fourth-quarter gross domestic product — the broadest measure of economic growth.
Investors have been encouraged by corporate profits that beat analysts’ expectations. According to FactSet Research, 72% of the companies in the S&P 500 have reported earnings for the fourth quarter that topped analysts’ expectations.
With little economic or corporate news on the docket Monday, investors may also be looking ahead to testimony later this week from Federal Reserve chair Janet Yellen.
In the corporate world, Comcast said Sunday that it will allow Netflix to connect directly to its broadband network, allowing for faster streaming.
Activist investor Carl Icahn stepped up pressure on eBay to spin off PayPal, in an open letter to shareholders.
Shares of HSBC slid after the bank reported earnings that came in below expectations.
Shares of Groupon stabilized after taking a 22% dive Friday. Shareholders pressed the sell button last week after the company warned it was expecting to report a loss in the first quarter.
On the earnings front, Solar City and Live Nation will report after the closing bell.
European markets were mixed. In Ukraine, the whereabouts of ousted President Viktor Yanukovych remain unknown. Meanwhile, the acting government has issued an arrest warrant for Yanukovych over the killings of civilians in last week’s bloodshed in Kiev.
Most Asian markets moved lower Monday, as some investors worried about potential problems within China’s red hot property market.
