LIVE MARKETS-US stocks nab record closing highs, boosted by earnings, data, headline reprieve

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U.S. STOCKS NAB RECORD CLOSING HIGHS, BOOSTED BY EARNINGS, DATA, HEADLINE REPRIEVE

The S&P 500 and the Nasdaq notched all-time closing highs on Thursday amid a broad rally nourished by a diet of solids: solid earnings, solid economic data and solid assurances that for now, at least, President Trump won't fire Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average .DJI rose 229.71 points, or 0.52%, to 44,484.49, the S&P 500 .SPX gained 33.66 points, or 0.54%, to 6,297.36 and the Nasdaq Composite .IXIC rallied 153.78 points, or 0.74%, to 20,884.27.

Tech shares .SPLRCT, banks .SPXBK, small caps .RUT and transports .DJT were among the day's outperformers, while healthcare shares .SPXHC were a clear laggard on the day.

Consensus-beating third-quarter results from PepsiCo PEP.O and an upbeat demand projection from United Airlines UAL.O provided reassurances that the consumer, who shoulders the burden of about 70% of the U.S. economy, is alive and kicking.

That notion was punctuated by a robust rebound in June retail sales, which handily surpassed the consensus estimate.

Additional data showed a surprise dip in initial jobless claims, languid import price growth, a faint uptick in homebuilder sentiment, and an unexpected leap by the Philly Fed back to expansion territory.

Sturdy economic indicators offer the Fed little immediate reason to lower its key policy rate, while inflation continues to coast north of its 2% target.

A quick glance at the CME's FedWatch tool shows financial markets are placing slightly better than even odds that the first rate cut of the year will happen at the conclusion of the September policy meeting.

Even so, San Francisco Fed President Mary Daly reiterated her view that it's "reasonable" to expect two 25 basis point rate cuts before year-end, particularly since the inflationary effect of the Trump tariffs appears to be more muted than expected.

Investors were also treated to a day of relative calm in the wake of Wednesday's volatile session, during which it appeared Trump was preparing to fire Powell, who is widely considered to be a stabilizing force for the markets.

Here's your closing snapshot:

(Stephen Culp)

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