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S&P, Nasdaq hit record closing highs on earnings bullishness

EconomyOct 28, 2021 06:46PM ET
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© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2021. REUTERS/Brendan McDermid

By Chuck Mikolajczak and Sinéad Carew

NEW YORK (Reuters) -Wall Street closed higher on Thursday, with the S&P 500 and Nasdaq boasting record closing levels thanks partly to gains in Apple and Amazon, while solid results from companies including Caterpillar and Merck helped ease concerns about slowing economic growth denting profits.

After the bell, however, shares of both Amazon.com Inc (NASDAQ:AMZN) and Apple Inc (NASDAQ:AAPL) moved sharply lower following the release of quarterly results.

Amazon was down 4% in extended trading after forecasting holiday-quarter sales below Wall Street expectations. Apple fell more than 3% in late trading after it said supply-chain woes cost it $6 billion in sales in the last quarter and that the impact will be even worse in the holiday-sales quarter.

During the regular session, heavyweights including Tesla (NASDAQ:TSLA) Inc, finishing up 3.8%, and Apple, which closed up 2.5%, spurred on the Nasdaq and the S&P.

The S&P was also boosted by Caterpillar Inc (NYSE:CAT), which closed up 4% after reporting a better-than-expected quarterly profit on rising commodity prices and a bullish forecast from drugmaker Merck & Co Inc, which added 6%.

Investors also eyed Washington, where President Joe Biden said he had secured a new $1.75 trillion framework for economic and climate change spending.

"Earnings continue to be very good," said Bill Stone, chief investment officer at the Glenview Trust Co in Louisville, Kentucky, who also noted that Biden's framework, if it succeeds, would not boost corporate taxes as investors had previously feared.

"Underneath the surface, that's a positive for corporate earnings" going forward, said Stone.

The Dow Jones Industrial Average closed up 239.79 points, or 0.68%, at 35,730.48, the S&P 500 gained 44.74 points, or 0.98%, to 4,596.42 and the Nasdaq Composite added 212.28 points, or 1.39%, to 15,448.12.

All 11 major S&P sectors closed higher, with Real Estate, consumer discretionary, and industrials leading the gains.

Solid earnings also helped offset a report from the Commerce Department which showed the U.S. economy grew at a 2% annualized rate in the third quarter as COVID-19 infections flared up, short of the 2.7% estimate, while another set of data showed fewer Americans filed new claims for unemployment benefits last week as the labor market slowly improves.

"Clearly we are seeing a large batch of macroeconomic data that has been coming through during the middle of third-quarter earnings reporting season and you are seeing a little bit of a tug-of-war that exists between macroeconomic data that is appearing to be somewhat softer at the margin and corporate performance which is proving to be better than expectations," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Minneapolis.

Earnings reports have helped advance in the benchmark S&P index in 10 of the previous 12 sessions, with analysts now expecting profits for S&P 500 companies to grow 38.6% year-on-year in the third quarter.

Of the 244 S&P 500 companies that had reported by Thursday morning, 82% had beaten estimates.

However EBay Inc shares finished down 6.8% after the e-commerce firm forecast downbeat holiday-quarter revenue.

Advancing issues outnumbered declining ones on the NYSE by a 2.15-to-1 ratio; on Nasdaq, a 2.46-to-1 ratio favored advancers.

The S&P 500 posted 34 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 104 new highs and 96 new lows.

On U.S. exchanges 11.05 billion shares changed hands compared with the 10.34 billion moving average for the last 20 sessions.

S&P, Nasdaq hit record closing highs on earnings bullishness
 

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Comments (24)
Darrell Peterson
Darrell Peterson Oct 29, 2021 2:59AM ET
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anyone notice that the USA is on the hook for 28,000 billions . Lol , lol , lol , lo , lmao ...........
Jon Bal
Jon Bal Oct 28, 2021 7:07PM ET
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anyone notice the 20 year treas. yeild > 30 year? wth?
Rodney Dangerfield
Rodney Dangerfield Oct 28, 2021 3:03PM ET
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89% of stocks are owned by those in the top 10% of wealth in United States lol
Iam Suleman
YesomiteSam Oct 28, 2021 3:03PM ET
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i hear you, you get no respect.
Junk Man
Junk_Man Oct 28, 2021 2:58PM ET
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Just keep buying... Don't ever sell.
Edson Mchaki
Edson Mchaki Oct 28, 2021 2:58PM ET
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why u say to buy but when u look for analysis it already touch privious high
Edson Mchaki
Edson Mchaki Oct 28, 2021 2:58PM ET
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we accept to sell !!
Dave Jones
Dave Jones Oct 28, 2021 2:31PM ET
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everything is awesome
perplexed76 .
perplexed76 . Oct 28, 2021 1:35PM ET
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el salvador is buying for sure
Abhijeet Ramachandrran
Abhijeet Ramachandrran Oct 28, 2021 1:16PM ET
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This is so stupid...ain't even funny now
jake goldstein
jake goldstein Oct 28, 2021 1:15PM ET
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wow.Great guys.I know nothing about tech but I become richer everyday.Just buy.Haha.I am so smart.
Stan Smith
Stan Smith Oct 28, 2021 12:49PM ET
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Welcome Bag Holders: The post-bubble-crash phase is already being prepared: 'no one could have seen this coming' - except anyone who paid attention to anything other than self-interested shills on Wall St..
jake goldstein
jake goldstein Oct 28, 2021 12:49PM ET
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plenty of shills especially on CNBC.I am sure they are all stood by the exit door together while they shout BUY.
Okoli kingsley
Okoli kingsley Oct 28, 2021 12:45PM ET
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we need to get a good market business
Stan Smith
Stan Smith Oct 28, 2021 12:29PM ET
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Solid earnings for who? a handful of FANG? What about small/medium size business...you know the backbone of the US economy and GDP? This investor deceit has to stop
Steffen vdm
Steffen vdm Oct 28, 2021 11:36AM ET
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Who or what is going to beat some sense into this market?
Churn NBurn
ChurnNBurn Oct 28, 2021 11:36AM ET
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Hyperinflation will … soon
Ethan Strong
Ethan Strong Oct 28, 2021 11:36AM ET
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I dont know but i keep buying puts on SPX. These levels are mind numbingly ridiculous
ben sc
ben sc Oct 28, 2021 11:36AM ET
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the prez,he just announced 1.75 trillion in New taxes to give to Chyna to sell us solar panels that will be subsidized by the govt. Don't worry, the corporations and Bezos are paying for it all.
Okoli kingsley
Okoli kingsley Oct 28, 2021 11:36AM ET
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dat nice
Steffen vdm
Steffen vdm Oct 28, 2021 11:12AM ET
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This market is not connected to economies whatsoever.
ben sc
ben sc Oct 28, 2021 11:12AM ET
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this is still the cares Act money and Trump tax structure economy. when new tax rates hit corporations and higher energy costs cripple consumer spending the recession will begin. after treasury auctions debt to finance the boondoggle then fed will raise rates to curb inflation. 2% gdp in Q3. that's negative growth when you factor inflation and increased money supply.
Jokers R Us
Jokers R Us Oct 28, 2021 11:12AM ET
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ben sc Wrong, stocks won't collapse, plunge protection team won't let it happen.
Mart Bab
Rubberduck1973 Oct 28, 2021 11:08AM ET
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Winter is coming. A COVID winter
ben sc
ben sc Oct 28, 2021 11:08AM ET
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Only in blue states where lockdowns work!!!
Mitchel Pioneer
Mitchel Pioneer Oct 28, 2021 11:00AM ET
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What a surprise.  Another loss reversed the day after in occurs.  1 day losses, and 10 day "rallies," only in the US Ponzi Scheme, greatest financial fraud in history, and biggest investment JOKE in the world.  Assume the proper position America.
Jokers R Us
Jokers R Us Oct 28, 2021 11:00AM ET
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just buy and make monopoly money
Heine Pedersen
Heine Pedersen Oct 28, 2021 10:58AM ET
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US stock market goes up if the sun shines..
Kenneth Gold
Kenneth Gold Oct 28, 2021 10:33AM ET
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Headlines should really say what Blackrock is pumping or dumping.
Ronald Warren
Ronald Warren Oct 28, 2021 10:33AM ET
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Anyone who tells you that the market is forward looking is a liar. When Powell starts tapering, I guess we can anticipate a 5% rise on the NASDAQ.
Jokers R Us
Jokers R Us Oct 28, 2021 10:33AM ET
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Fed won't taper, they can't.
Karya Pratama
Karya Pratama Oct 28, 2021 10:32AM ET
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yesss.. i dont believe
Casador Del Oso
Casador Del Oso Oct 28, 2021 10:19AM ET
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don't believe it. recession always follows sharp rise in energy prices. look out below, joe.
ben sc
ben sc Oct 28, 2021 10:19AM ET
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truth. just look at the correlation between price of Brent crude and gas. we were headed for recession when Trump won and he increased domestic production to lower energy costs.
Darryl Allen
Darryl Allen Oct 28, 2021 10:19AM ET
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ben sc  so Trump prevented recession by lowering energy cost
Junk Man
Junk_Man Oct 28, 2021 10:09AM ET
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Buy the news sell the fact
Jon Bal
Jon Bal Oct 28, 2021 10:03AM ET
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arent you supposed to buy before the news comes out?
Kaveh Sun
Kaveh Sun Oct 28, 2021 10:03AM ET
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The rich bought always have ‘news’ before the public
Mohd Ekhwan Wahab
Mohd Ekhwan Wahab Oct 28, 2021 9:50AM ET
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trap
Michael Lauren
Michael Lauren Oct 28, 2021 9:50AM ET
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Definitely!
Kaveh Sun
Kaveh Sun Oct 28, 2021 9:29AM ET
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Wait yesterday, Reuters said the market tank because earning. Now it is up because earning. Reuters flipflop faster than the speed of light.
Sergio Gonçalves
Sergio Gonçalves Oct 28, 2021 9:29AM ET
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Yeah!!! because we have earnings of this and earnings of that...:)
 
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