S&P hits record high as U.S. economic outlook brightens

By Yashaswini Swamynathan

(Reuters) - The S&P 500 hit a record intraday high on Monday, extending a rally fuelled by stellar jobs data that underscored the resilience of the U.S. economy amid global uncertainty.

The benchmark index , which struggled to break past its May 2015 record in recent months, hit a record intraday high of 2,141.11. At 13:33 p.m. ET, the index was up 11.21 points, or 0.53 percent.

Seven of the 10 major S&P sectors higher. Industrials <.SPLRCI> and consumer staples <.SPLRCS> also hit record highs.

The other main indexes also notched up milestones - the Nasdaq was trading at its highest level this year, while the Dow hit a more than 13-month high.

"You have Brexit and global stagnation, but underneath that we keep getting really good economic numbers and that is forcing the (stock) market to new highs," said Jim Paulsen, chief investment strategist at Wells Capital Management.

Britain's vote to leave the European Union last month triggered a massive global selloff and sent U.S. Treasury yields to record lows.

The Dow Jones Industrial Average was up 122.52 points, or 0.68 percent, at a more than 13-month high of 18,269.26, while the Nasdaq Composite index was up 40.34 points, or 0.81 percent, at 4,997.10.

Much of how the indexes perform over the next few weeks will depend on the quality of second-quarter earnings, which kick off with Alcoa releasing its results after markets close on Monday.

"At some point you need earnings growth and if it turns out we don't have that earnings growth in the second half, then I do think the market can stall out here," said Dan Miller, director of equities at GW&K Investment Management.

The S&P 500 is trading near 16.7 times forward 12-month earnings, above the 10-year median of 14.7 times, according to StarMine data.

"I think the market has reached a valuation point which is extreme," said James Abate, chief investment officer at Centre Asset Management.

Earnings of S&P 500 components are expected to fall 4.8 percent, compared with the year-earlier quarter, according to Thomson Reuters data. First-quarter earnings had fallen 5 percent.

Investors will also watch out for comments from company executives, especially those of big banks later this week, on the impact of Britain's vote to leave the European Union.

Shares of Amazon rose 1.2 percent to $754.61 and provided the biggest boost to the S&P and the Nasdaq, while Boeing's 1.8 percent rise made it the top influence on the Dow.

Advancing issues outnumbered decliners on the NYSE by 2,170 to 799. On the Nasdaq, 2,057 issues rose and 773 fell.

The S&P 500 index showed 75 new 52-week highs and no new lows, while the Nasdaq recorded 150 new highs and 10 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)