Trader works on the floor of the New York Stock Exchange (NYSE) on October 18, 2021 in New York City, USA. Reuters / Brendan McDermid
October 20, 2021
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Devik Jain, Shreyashi Sanyal, Sinead Kairav
(Reuters) – The S&P 500 and the Dow hit one-day highs on Wednesday, as investors raked in better-than-expected third-quarter earnings from US companies.
The Nasdaq lagged as tech stocks took a break, but the Dow Jones Industrial Average surpassed the previous record reached in mid-August, halting growth during the session. The benchmark S&P 500 index fell within 5 points of its opening September record at its peak of the day.
The S&P’s healthcare index climbed for the second day in a row, helped by Anthem and Abbott. Both are based on impressive financial forecasts.
As of October 4, the S&P was down nearly 6% from a record as of October 4, as investors worried about supply chain issues, margin pressure, rising wages and rising input costs ahead of the earnings season that began last week. Rice field.
According to strategist and portfolio manager Jack Jansevich, US companies have cited supply chain issues and rising costs in their revenue calls, but investors have so far been relieved to pass on the costs to their clients. It appears that doing so can maintain profit margins. At Natixis Investment Managers Solutions.
“Revenue is significant, and what we’ve seen so far was actually better than expected. Margins are really holding up,” Janasiewicz said.
“The bar was set very low in (earnings season), so things got a little easier… So far, things are better than expected. This puts upward pressure on the stocks. I am “
Analysts expected benchmark index revenue to rise 33% year-over-year, as it comprised about 14% of the S&P 500 Q3 report. According to the latest Refinitiv data, over 85% of revenue is better than expected.
The Dow Jones Industrial Average rose 152.03 points (0.43%) to 35,609.34, the S&P 500 rose 16.56 points (0.37%) to 4,536.19, and the Nasdaq Composite Index fell 7.41 points (0.05%) to 15,121.68.
The CBOE Volatility Index, also known as Wall Street’s horror gauge, closed at 15.49 after hitting its lowest level since August 13, 15.29.
Eight of the S&P’s 11 major industry sector indices rose, driven by utilities and real estate (both up about 1.6%) and healthcare stocks (up 1.5%).
The technical sector was the biggest delay in the S&P 0.3%, as it posted a five-day response.
The S&P 500 value index, which holds economically sensitive stocks such as energy and industry, rose 0.9% after hitting record highs.
However, IBM shares fell nearly 5% after bell trading on Wednesday after missing market forecasts for third-quarter earnings due to lower orders in managed infrastructure units ahead of the spin-off.
Tesla’s share is down in the second half of the transaction, even as Wall Street’s third-quarter earnings forecast exceeded record deliveries as electric carmakers overcame a long global shortage of chips and raw materials. But fell.
Abbott Laboratories rose 3.3% in its regular trading session after raising its full-year profit forecast with a recovery in COVID-19 test sales.
Anthem Inc. rose 7.7% after raising its full-year earnings estimate. However, Biogen Inc. stock fell 0.6% as it raised its full-year earnings estimate, while quarterly sales for Alzheimer’s disease treatment fell well below expectations.
Verizon Communications Inc. grew 2.4% after adding more postpaid customers than expected in the third quarter.
On the New York Stock Exchange, ongoing issues outweigh ongoing issues by a ratio of 2.29:1. On the Nasdaq, a 1.37:1 ratio favored Advancer.
The S&P 500 recorded 53 new 52-week highs and no new lows. The Nasdaq Composite posted 106 new highs and 41 new lows.
The US exchange traded 9.29 billion shares, compared to an average of 10.26 billion shares over the past 20 sessions.
(Reporting by Devik Jain and Shreyashi Sanyal in Bangalore, Edited by Sinead Kairav and Arun Koyur in New York)