Dow Jones & S&P 500 Rise Again, Near All-Time Highs, Company & Market News & Top Stories
NEW YORK (AFP) – The Dow Jones and the S&P 500 rose again on Wednesday, October 20, narrowly missing all records, following a wave of generally good earnings that allayed inflation concerns and choked the supply chains.
A Federal Reserve report said transportation constraints and a shortage of goods have caused “dramatically high prices” in most parts of the United States, slowing economic growth.
But with the latest batch of corporate results, investors are increasingly convinced that rising consumer prices will not derail the recovery.
âWe believe the stock market has more to climb in this bull market and that some of the headwinds for Covid are receding,â said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance.
As inflation rises, this means that “many companies continue to have pricing power, which should preserve corporate profits,” he said, a dynamic mentioned in the beige report from the Fed on the economy.
The Dow Jones Industrial Average, which hit an all-time intraday high, ended with a gain of 0.4% to 35,609.34.
The broad base S&P 500 gained 0.4% to close at 4,536.19, less than a point from an all-time high. But the tech-rich Nasdaq Composite Index lost 0.1% to 15,121.68.
âOctober is a reversal of September because we see the economy being strong,â said Jack Ablin, chief investment officer at Cresset Capital. “Businesses are very profitable. I think it was really the finances that caught everyone’s attention.”
Among sole proprietorships, Netflix fell 2.2% despite exceeding expectations as global streaming hits like Squid Game drew in mass viewers.
The pullout follows gains earlier in 2021 and as the streaming giant grapples with the fallout from a recent Dave Chappelle special that activists say is harmful to the transgender community.
A few dozen Netflix workers staged a walkout and rally in Los Angeles on Wednesday calling for better representation within the Hollywood powerhouse.
Verizon climbed 2.5% after profits exceeded analysts’ expectations for broadband subscriber growth.
Pinterest jumped 12.8% amid reports of possible buyout talks by online payment service provider PayPal. PayPal fell 4.9%.
Biogen lost 0.6% after reporting sales of just US $ 300,000 (S $ 400,000) of the new Alzheimer’s disease drug Aduhelm, a fraction of the US $ 12 million expected by analysts.