Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks Rally on Strong Earnings and Low Jobless Claims

By Zacks Investment ResearchStock MarketsOct 14, 2021 09:15PM ET
www.investing.com/analysis/stocks-rally-on-strong-earnings-and-low-jobless-claims-200605166
Stocks Rally on Strong Earnings and Low Jobless Claims
By Zacks Investment Research   |  Oct 14, 2021 09:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The wind was certainly at the market’s back on Thursday as investors enjoyed good news on several fronts, including earnings reports, jobless claims and even inflation. Stocks soared well over 1.5% and are poised for a second straight week of gains.

The NASDAQ jumped 1.73% (or about 251 points) to 14,823.43, while the S&P rose 1.71% to 4438.26. Meanwhile, the Dow snapped its four-day losing streak in a big way by soaring 1.56% (or nearly 535 points) to 34,912.56.

The market doesn’t always respond positively to solid earnings reports, but today it sure did. Investors are feeling some relief at such strong results in the face of crippling global supply chain issues, rising inflation and other factors that threaten to slow the economic recovery.

But on Thursday we were all treated to double-digit earnings surprises from several of the country’s largest financial institutions, including Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C) and US Bancorp (NYSE:USB).

And there were plenty positive surprises outside of the big banks, including Taiwan Semiconductor (TSM), UnitedHealth (NYSE:UNH) and Walgreens Boots Alliance (NASDAQ:WBA), among others.

In other news on Thursday, jobless claims for last week came in at 293,000, which was much better than expectations of around 320K. It was also the first result below 300K since Covid began, which means we're back at a pandemic-era low for the first time in a month.

And we even received some decent inflation data today, as the PPI rose ‘only’ 0.5% in September. That result was better than expectations for a 0.6% advance and an improvement from August’s 0.7% increase. Of course, inflation remains abnormally high any way you look at it, as evidenced by producer prices rising 8.6% year over year.

Nevertheless, that’s two “could’ve been worse” inflation reports in as many days, which should keep investors calm while we wait for the Fed’s “transitory” prediction to come through.

So what’s in store for tomorrow? More of the same, of course! We’ll be getting a new round of earnings reports and a bit more economic data, including retail sales. The major indices are higher for the week heading into Friday, but more gains would certainly be appreciated

Today's Portfolio Highlights:

Home Run Investor: The portfolio is a bit light these days, so Brian added for a second consecutive session on Thursday. He picked up Health Catalyst (NASDAQ:HCAT), a provider of data and analytics technology and services to healthcare organizations. This Zacks Rank #2 (Buy) topped the Zacks Consensus Estimate in each of the past four consecutive quarters, but the editor considers the most recent beat to be a “watershed moment”. HCAT broke even in that quarter, which not only beat expectations for a 13-cent loss but could also be signaling a move into profitability. If the company does get to the plus side, then Brian thinks we could see “a dramatic shift in estimates”. And with topline growth expectations of 23.5% for this year and 28.5% for next; HCAT seems ready to move into the black. Read the full write-up for more on today’s addition.

Surprise Trader: Earnings season is heating up with several of the country’s biggest banks already reporting, but Dave is leaving the big city and going out to the farm for today’s addition. The editor added Tractor Supply (NASDAQ:TSCO), the well-known retail farm and ranch store chain that has eclipsed the Zacks Consensus Estimate for six straight quarters. In fact, the last four surprises come to an average beat of 22.5%. This Zacks Rank #2 (Buy) has a positive Earnings ESP for its next report that’s scheduled for Thursday, October 21 before the bell. Dave added TSCO today with a 12.5% allocation, while also selling half of Dave & Busters (PLAY) for an 8.3% return in a little more than a month. Read the full write-up for more.

Insider Trader: "The data continues to be better than expected so that's lighting a fire under the stock market again. Remember, the market is forward looking. It has already priced in the supply chain issues.

"And yes, a lot of companies are going to talk about those issues and inflation in their earnings calls. But the Street knows this and is already thinking its transitory.

"The Street is already looking beyond the next few weeks and into next year. 2022 looks better as the supply chain issues work themselves out which should also help with some of the inflationary pressures."
-- Tracey Ryniec

See You Friday,
Jim Giaquinto

Recommendations from Zacks' Private Portfolios:

Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>


Zacks Investment Research
Stocks Rally on Strong Earnings and Low Jobless Claims
 

Related Articles

Stocks Rally on Strong Earnings and Low Jobless Claims

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email