Stocks moved higher on the first day of August thanks to a rally in telecoms, though weak auto sales capped any big gains.
The Dow Jones Industrial Average jumped 0.4% to 21,974 after striking an all-time high of 21,990 earlier in the session. The S&P 500 increased 0.25% and the Nasdaq added 0.21%.
The Dow was on track to close at another record, what would be its fifth consecutive all-time high in a row. Here comes Dow 22,000? Well....
"We are a little overextended," TheStreet's founder and Action Alerts PLUS portfolio manager Jim Cramer said in an interview.
Sprint Corp. (S) - Get Reportmoved nearly 11% higher after returning to profit for the first time in three years. The telecom earned 5 cents a share over its first quarter compared to a loss of 8 cents a year earlier. Analysts anticipated a loss of a penny a share. Revenue of $8.16 billion came in slightly below estimates. Postpaid phone customers increased by 88,000, while prepaid customers rose by 35,000. Sprint forecasts cost cuts of an additional $1.3 billion to $1.5 billion over fiscal 2017.
Other telecoms followed Sprint's lead. Verizon Communications Inc. (VZ) - Get Report led the Dow, NTT Docomo Inc. (DCM) , Telefonica S.A. (TEF) - Get Report and BT Group PLC (BT) gained. The iShares Dow Jones U.S. Telecom ETF (IYZ) - Get Report rose 1%.
Ford Motor Co. (F) - Get Report , General Motors Co. (GM) - Get Report and Fiat Chrysler (FCAU) - Get Report reported worse-than-expected July sales on Tuesday. Ford's sales dipped 7.5% vs. an expected 5% decline. Ford's weaker performance was driven largely by lower fleet sales, which were down 26.4%. Retail sales declined 1%.
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