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U.S. stocks ended higher on Thursday, with the S&P 500 and Nasdaq closing at record highs, as robust earnings from a string of big companies helped boost investor confidence. Also, indications that Democrats in Congress might soon reach a budget deal helped lift investors sentiment. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.7% or 239.79 points to finish at 35,730.48 points, missing its record close marginally.
The S&P 500 rose 0.98% or 44.74 points to end at a new record high of 4,596.42 points.
All the 11 sectors of the benchmark index ended in positive territory, with real estate and consumer discretionary being the best performers. The Real Estate Select Sector SPDR (XLRE) gained 1.5%, while the Consumer Discretionary Select Sector SPDR (XLY) added 1.3%.
The tech-heavy Nasdaq gained 1.4% or 212.28 points to end at 15,448.12 points to touch its own record set on Sep 7.
Shares of Apple, Inc. (AAPL - Free Report) and Amazon.com, Inc. (AMZN - Free Report) gained 2.5% and 1.6%, respectively. Apple has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 2.65% to 16.53. A total of 11.05 billion shares were traded on Thursday, higher than the last 20-session average of 10.34 billion. Advancers outnumbered decliners on the NYSE by a 2.15-to-1 ratio. On Nasdaq, a 2.46-to-1 ratio favored advancing issues.
Robust Earnings Boost Investors’ Confidence
It has been a great earnings season so far. Thursday was no different as investors’ confidence got a further boost following robust quarterly reports by a slew of companies. Ford Motor Company (F - Free Report) led the rally, with its shares jumping 8.7% to record its best day this year.
The automobile giant reported adjusted earnings of $0.51 per share for third-quarter 2021, surpassing the Zacks Consensus Estimate of $0.28 per share. The company also raised its full-year 2021 guidance for the second time this year, citing robust projections for the fourth quarter.
Also shares of Apple and Amazon jumped ahead of the company’s announcement of quarterly results after the bell. Almost half of the total companies in the S&P 500 have reported their quarterly results, with 82% beating estimates.
Strong results from companies have somewhat eased fears of a slowing economic recovery. Also, investors kept a close watch on developments in Washington where President Joe Biden said that he has managed to secure a new $1.75 trillion framework that is to be spent on economic development and climate change.
Economic Data
Strong third-quarter earnings somewhat overshadowed not-so-impressive economic data. The government said that the economy grew 2% in the third-quarter, following an initial reading of the gross domestic product. This is the slowest growth since the second quarter of 2020 and narrower than expectations of 2.8% and down from 6,7% recorded in the second quarter.
The National Association of Realtors said that pending home sales declined 2.3% in September on a month-over-month basis, lower than expectations of a 1% rise.
Initial jobless claims hit a fresh post-pandemic era low of 281,000 in the week ending Oct 23, declining 10,000 from a revised 291,000 in the prior week. This is the lowest level since Mar 14, 2020.
The four-week moving average also fell to 299,250 a decline of 142,000 from the previous week’s revised average and the lowest since Mar 14.
Besides, continuing claims declined by 237,000 to 2,243,000, yet another pandemic-era low. The previous week's numbers were revised downward by 1,000 from 2,481,000 to 2,480,000. The 4-week moving average came in at 2,513,250, a decline of 142,000 from the previous week's revised average.
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Stock Market News for Oct 29, 2021
U.S. stocks ended higher on Thursday, with the S&P 500 and Nasdaq closing at record highs, as robust earnings from a string of big companies helped boost investor confidence. Also, indications that Democrats in Congress might soon reach a budget deal helped lift investors sentiment. All the three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 0.7% or 239.79 points to finish at 35,730.48 points, missing its record close marginally.
The S&P 500 rose 0.98% or 44.74 points to end at a new record high of 4,596.42 points.
All the 11 sectors of the benchmark index ended in positive territory, with real estate and consumer discretionary being the best performers. The Real Estate Select Sector SPDR (XLRE) gained 1.5%, while the Consumer Discretionary Select Sector SPDR (XLY) added 1.3%.
The tech-heavy Nasdaq gained 1.4% or 212.28 points to end at 15,448.12 points to touch its own record set on Sep 7.
Shares of Apple, Inc. (AAPL - Free Report) and Amazon.com, Inc. (AMZN - Free Report) gained 2.5% and 1.6%, respectively. Apple has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 2.65% to 16.53. A total of 11.05 billion shares were traded on Thursday, higher than the last 20-session average of 10.34 billion. Advancers outnumbered decliners on the NYSE by a 2.15-to-1 ratio. On Nasdaq, a 2.46-to-1 ratio favored advancing issues.
Robust Earnings Boost Investors’ Confidence
It has been a great earnings season so far. Thursday was no different as investors’ confidence got a further boost following robust quarterly reports by a slew of companies. Ford Motor Company (F - Free Report) led the rally, with its shares jumping 8.7% to record its best day this year.
The automobile giant reported adjusted earnings of $0.51 per share for third-quarter 2021, surpassing the Zacks Consensus Estimate of $0.28 per share. The company also raised its full-year 2021 guidance for the second time this year, citing robust projections for the fourth quarter.
Also shares of Apple and Amazon jumped ahead of the company’s announcement of quarterly results after the bell. Almost half of the total companies in the S&P 500 have reported their quarterly results, with 82% beating estimates.
Strong results from companies have somewhat eased fears of a slowing economic recovery. Also, investors kept a close watch on developments in Washington where President Joe Biden said that he has managed to secure a new $1.75 trillion framework that is to be spent on economic development and climate change.
Economic Data
Strong third-quarter earnings somewhat overshadowed not-so-impressive economic data. The government said that the economy grew 2% in the third-quarter, following an initial reading of the gross domestic product. This is the slowest growth since the second quarter of 2020 and narrower than expectations of 2.8% and down from 6,7% recorded in the second quarter.
The National Association of Realtors said that pending home sales declined 2.3% in September on a month-over-month basis, lower than expectations of a 1% rise.
Initial jobless claims hit a fresh post-pandemic era low of 281,000 in the week ending Oct 23, declining 10,000 from a revised 291,000 in the prior week. This is the lowest level since Mar 14, 2020.
The four-week moving average also fell to 299,250 a decline of 142,000 from the previous week’s revised average and the lowest since Mar 14.
Besides, continuing claims declined by 237,000 to 2,243,000, yet another pandemic-era low. The previous week's numbers were revised downward by 1,000 from 2,481,000 to 2,480,000. The 4-week moving average came in at 2,513,250, a decline of 142,000 from the previous week's revised average.