Dow, S&P 500 and Nasdaq hit record highs as Wall Street bets on a strong earnings season – CNBC

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U.S. stocks reached record highs on Friday as investors bet on another strong earnings season.

The S&P 500 rose 0.15 percent and hit an all-time intraday high, with information technology leading advancers. The Nasdaq composite also hit a record, advancing 0.3 percent. The Dow Jones industrial average traded 48 points higher, with American Express contributing the most to the gains.

“We’ve had three good quarters in a row for earnings, if you go back to the fourth quarter of 2016,” said Ernie Cecilia, CIO at Bryn Mawr Trust. “Last quarter, we also saw an improvement in revenue growth as it moved ahead of its long-term trend, which is a positive.”

Corporate earnings for the S&P 500 have grown 6.1 percent, 15.5 percent and 10.8 percent in the fourth quarter of last year and the first and second quarters of 2017, respectively.

Earnings are expected to grow by 4 percent for the third quarter, according to S&P Capital IQ.

“Our early read on the overall results remains positive with 87% of the early 3Q 2017 reporters beating EPS estimates,” said Nick Raich, CEO of The Earnings Scout, in a note to clients.

Shares of Bank of America briefly rose more than 1 percent in the premarket after reporting earnings and revenue that topped expectations. The stock traded 0.4 percent higher as of 10:04 a.m. in New York.

JPMorgan Chase and Citigroup also posted stronger-than-expected quarterly results on Thursday.

Streaming giant Netflix is set to report its quarterly results Monday after the bell and Goldman Sachs is betting on a strong report.

Analysts at Goldman raised their price target on Netflix shares to $235 from $200 a share, noting: “We believe consensus subscriber estimates for Netflix ahead of Monday’s earnings remain too low, particularly for the quarter, 4Q, and beyond.”

Shares of Netflix advanced nearly 2 percent.

Wall Street also digested lighter-than-expected economic data in the form of inflation and retail sales numbers. The consumer price index rose 0.6 percent last month, below the expected gain of 0.7 percent. Retail sales, meanwhile, gained 1.6 percent, while analysts polled by Reuters expected a gain of 1.7 percent.

Treasury yields fell on the news, with the benchmark 10-year yield trading at 2.28 percent.