- Caterpillar and Merck increase after posting higher profits
- US economic growth slowed sharply in the third quarter
- eBay slips on weak fourth quarter forecast
- Dow up 0.53%, S&P 500 up 0.88%, Nasdaq up 1.27%
NEW YORK, Oct.28 (Reuters) – The Nasdaq hit an all-time high on Thursday, boosted by Apple and Amazon gains ahead of their quarterly profits, while strong results from companies like Caterpillar and Merck have helped allay concerns about slowing economic growth. profits.
Large-cap stocks Tesla Inc (TSLA.O), Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) topped the Nasdaq and helped propel the index to a record high after the S&P 500 and the Dow hit new highs earlier in the week. Tesla shares gained 3.1%, Apple rose 2.5%, and e-commerce giant Amazon.com rose 2.3%. Apple and Amazon were due to release quarterly results after the closing bell.
Caterpillar Inc (CAT.N) added 3.6% after reporting better-than-expected quarterly profit on rising commodity prices, while an increase predicted by drugmaker Merck & Co Inc (MRK.N ) helped increase its shares by 5.5%. Read more
Strong earnings helped offset a Commerce Department report that showed the US economy grew at an annualized rate of 2% in the third quarter as COVID-19 infections escalated, below estimate by 2.7%, while another data set showed fewer Americans. filed new claims for unemployment benefits last week as the labor market slowly improves. Read more
“Obviously we see a lot of macro data that came in the middle of the third quarter earnings season and you see a bit of a tug-of-war that exists between the macro data that seems to be a bit lower at the level. margin and business performance that is better than expected, ”said Bill Northey, senior investment manager at US Bank Wealth Management in Minneapolis.
The Dow Jones Industrial Average (.DJI) rose 187.52 points, or 0.53%, to 35,678.21, the S&P 500 (.SPX) gained 39.95 points, or 0.88%, to 4,591.63 and the Nasdaq Composite (.IXIC) added 193.36 points, or 1.27%, to 15,429.20.
Each of S&P’s top 11 sectors grew, with Consumer Discretionary (.SPLRCD) and Industrials (.SPLRCI) each increasing by more than 1%.
Strong earnings reports helped fuel the S&P benchmark’s advance in 10 of the past 12 sessions, with analysts now expecting S&P 500 company earnings to rise 38.6% year-on-year in the third quarter. Of the 244 S&P 500 companies that posted earnings through Thursday morning, 82% have beaten earnings estimates.
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 declines, EBay Inc (EBAY.O) fell 7.0% after the e-commerce company forecast low revenue for the holiday quarter. Read more
The advancing issues outnumbered the declining ones on the NYSE by a ratio of 2.07 to 1; on the Nasdaq, a ratio of 2.31 to 1 favored the advancers.
The S&P 500 posted 33 new 52 week highs and 4 new lows; the Nasdaq Composite recorded 90 new highs and 85 new lows.
Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis
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