Nasdaq hits record high ahead of Apple and Amazon results



Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, October 27, 2021. REUTERS / Brendan McDermid

  • Apple, Tesla and Amazon boost S&P 500 and Nasdaq
  • Caterpillar and Merck increase after posting higher profits
  • US economic growth slowed sharply in the third quarter
  • eBay slips on weak fourth quarter forecast
  • Indexes up: Dow 0.39%, S&P 0.73%, Nasdaq 1.09%

October 28 (Reuters) – The Nasdaq hit an all-time high on Thursday, led by large-cap companies Apple, and Tesla, while strong results from Caterpillar and Merck helped investors ignore signs of slowing economic growth.

Ten of S&P’s top 11 sectors advanced, with technology (.SPLRCT) reaching an all-time high and consumer discretionary (.SPLRCD) increasing by more than 1%.

Shares of Tesla Inc (TSLA.O) rose 3.4%. Apple (AAPL.O) and e-commerce giant (AMZN.O) gained 2.6% and 1.9%, respectively, ahead of their earnings reports later today that would close a reporting season largely bullish on Wall Street technology. titans.

Ford Motor Co (FN) jumped 8.4% after the automaker beat third-quarter profit estimates and raised its full-year profit forecast. Read more

Caterpillar Inc (CAT.N) added 3.2% after reporting better-than-expected quarterly profit on rising commodity prices, while an increase predicted by drugmaker Merck & Co Inc (MRK.N ) helped its stocks gain 4.6%. Read more

“We are still supportive of US equities and don’t expect the short-term reasons for the uptrend to fade, which is driven by strong earnings,” said James Gaul, portfolio manager at Knights of Columbus Asset Advisors.

“There are supply chain issues affecting short term results, but there is an anticipation of high demand and supply issues going forward, and for all major industries, the long term. is attractive. “

The Commerce Department report showed the U.S. economy grew at an annualized rate of 2% in the third quarter as COVID-19 infections erupted, while another set of data showed fewer Americans filed for new unemployment benefits last week. Read more

“The slowdown in growth in the third quarter was the result of spending activity normalizing and the significant bottlenecks that remained … this will not deter the Fed from deciding to phase out its bond purchases. next week, given the good labor market situation and rising price risks, ”said Bernd Weidensteiner, senior economist at Commerzbank, in a note.

Stellar earnings reports have driven the benchmark S&P 500 (.SPX) and the Dow Jones Industrial Average (.DJI) to record highs this week, with analysts expecting corporate earnings in the S&P 500 increase 38.6% year-on-year in the third quarter. trimester.

As of 11:57 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 137.92 points, or 0.39%, to 35,628.61, the S&P 500 (.SPX) was up 33.32 points, or 0.73%, to 4,585.00, and the Nasdaq Composite (.IXIC) gained 165.59 points, or 1.09%, to 15,401.42.

Tech and growth stocks also benefited from a decline in the 10-year U.S. Treasury yield, which hit its highest level since mid-May last week amid inflation and upside concerns. rates.

President Joe Biden said he had secured a new $ 1.75 trillion economic and climate change spending framework that could be passed by the Senate, and expressed confidence that he would win everyone’s support. the wings of the Democratic Party. Read more

Among the biggest losers, EBay Inc (EBAY.O) fell 7.5% after the ecommerce company forecast low earnings for the holiday quarter. Read more

Rising issues outnumbered declines by a 1.95-to-1 ratio on the NYSE and by a 2.22-to-1 ratio on the Nasdaq.

The S&P Index recorded 30 new 52-week highs and three new lows, while the Nasdaq recorded 77 new highs and 76 new lows.

Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Shounak Dasgupta, Maju Samuel and Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.


Leave A Reply

Your email address will not be published.