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Wall Street closes at record but Facebook weighs

Stock MarketsOct 26, 2021 08:27PM 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 21, 2021. REUTERS/Brendan McDermid

By Chuck Mikolajczak

NEW YORK (Reuters) - U.S. stock indexes closed modestly higher on Tuesday, with the Dow Industrials and S&P 500 hitting fresh records, and gains were subdued as Facebook shares fell in the wake of its quarterly earnings.

Facebook Inc (NASDAQ:FB), down 3.92%, was the biggest drag on the S&P 500 and Nasdaq, after the company warned that Apple Inc (NASDAQ:AAPL)'s new privacy changes would weigh on its digital business. Shares of the social media company closed below its 200-day moving average for the first time since March 8, a technical support level that could indicate further declines.

"Facebook has other issues, certainly the earnings report wasn't as stellar," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.

"Then pile on the issues with the whistleblower, what they knew, what they didn't know, how they set themselves up to benefit themselves even at the risk of kids and people that use the platform. That is going to kind of hang over it."

However, the benchmark S&P index scored a new high, lifted by names with big market capitalizations. Nvidia (NASDAQ:NVDA) Corp gained 6.70% to close at a record high of $247.17, while Amazon.com Inc (NASDAQ:AMZN) advanced 1.68% and Apple rose 0.46%.

Support also came from a 6.95% advance in United Parcel Service Inc (NYSE:UPS) and a 2.03% rise in General Electric (NYSE:GE) Co on the heels of their quarterly results.

The Dow Jones Industrial Average rose 15.73 points, or 0.04%, to 35,756.88; the S&P 500 gained 8.31 points, or 0.18%, at 4,574.79; and the Nasdaq Composite added 9.01 points, or 0.06%, at 15,235.72.

Earnings at S&P 500 companies are expected to grow 35.6% year-on-year in the third quarter, with market participants gauging how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures.

"(The market) is getting tired. They ran them up ahead of earnings because everyone is expecting them to be good and robust, and they are ... but the market feels tired to me now way up here," said Polcari.

While nearly all 11 S&P sectors rose on the session, defensive plays such as utilities and real estate were among the best performers, indicating some caution in the market.

After the closing bell, Microsoft Corp (NASDAQ:MSFT) gained 1.29% while Google parent Alphabet (NASDAQ:GOOGL) Inc slipped 0.24% following their quarterly results.

Data showed U.S. consumer confidence unexpectedly rebounded in October as concerns about high inflation were offset by improving labor market prospects. A Commerce Department report showed sales of new single-family homes surged 14.0% in September.

Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, said with indexes at or near record levels, a run of good economic data could increase investor concerns the Federal Reserve may pull its timeline for a rate hike forward.

The central bank's next policy announcement is expected on Nov. 3 after a two-day meeting.

Shares of Hasbro Inc (NASDAQ:HAS) climbed 3.23% after the toy maker posted an upbeat third-quarter profit even as it warned of a hit to holiday sales from supply chain issues.

Declining issues outnumbered advancers on the NYSE by a 1.13-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored decliners.

The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 144 new highs and 79 new lows.

Volume on U.S. exchanges was 12.34 billion shares, compared with the 10.41 billion average for the full session over the last 20 trading days.

Wall Street closes at record but Facebook weighs
 

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Comments (14)
Bahjath Muhammed
Bahjath Muhammed Oct 26, 2021 10:40PM ET
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Come and Invest in SriLankan Stock Market which has increased by 100% since Pandemic
Lesko Brandon
Lesko Brandon Oct 26, 2021 2:00PM ET
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It's not an "earnings cheer", it's an inflation cheer. The S&P has performed similar to corn over the past year, and underperformed housing. This bubble is paid for by taxpayers in the lower/middle class through inflation, massive debt, and government subsidization of industry that makes donations to these politicians in exchange for pork money. Meanwhile cost of living going through the roof, supply chain shortage, millions not working, failed vaccines that we are learning more and more about adverse cardiac events including in youth, government colluding with private entities to control information/silence political dissidents, etc. True fascism, and it is doing nothing but enriching those at the top. There is a reason that both Occupy Wallstreet and BLM arose during Obama, and these bra.inless ma.rxists keep self-inflicting injury for their political/corporate overlords.
Lesko Brandon
Lesko Brandon Oct 26, 2021 2:00PM ET
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*meant underperformed oil, not housing
Antonio Velardo
Antonio Velardo Oct 26, 2021 1:50PM ET
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Bad posts of many people mad at a rising markets because they decide to persaverate to hold they short positions.
Mitchel Pioneer
Mitchel Pioneer Oct 26, 2021 12:54PM ET
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And the laughingstock of the financial world magically bounces off the break even mark.  Can't go negative under any circumstances.  The knife catchers have clocked in, and the curtain rises on the greatest comedy on earth.
Paul Richard
Paul Richard Oct 26, 2021 12:54PM ET
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money money money for me, sorry you decided months ago not to participate in this ride.
ben sc
ben sc Oct 26, 2021 11:38AM ET
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look, Fed isn't going to raise rates until they can sell all the debt to finance the green new deal. so that means rampant inflation for the next 6 months, long term inflation for a decade. want to win in this market? take put as much debt as you can at low rates and purchase assets that hedge against inflation.
Kaveh Sun
Kaveh Sun Oct 26, 2021 11:07AM ET
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Man, lots of people here r missing the boat so they p! Ss. I bet i went down but i went up and i lost tons of money. I accept that i was dump to take a sho.t at the market.
Antonio Velardo
Antonio Velardo Oct 26, 2021 11:07AM ET
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This is fair 👍
neang aee 냥에
neang aee 냥에 Oct 26, 2021 10:28AM ET
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.There's no big diff.s from tulip.auctions.Farewell to greedies ...
Stan Smith
Stan Smith Oct 26, 2021 10:26AM ET
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What about the earning of other sectors and small business?
Steffen vdm
Steffen vdm Oct 26, 2021 10:26AM ET
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Let's just focus on the ones we know will perform well, shall we? Otherwise our business model is out of the window
Steffen vdm
Steffen vdm Oct 26, 2021 10:10AM ET
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If news is good: Yeah! Fantastic! Up we go! If news is bad: mwah...
Eloy Rodrigo
Eloy Rodrigo Oct 26, 2021 10:05AM ET
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Home prices rising 1% a month.
Mitchel Pioneer
Mitchel Pioneer Oct 26, 2021 9:54AM ET
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Welcome to the worldwide miracle called the US Ponzi Scheme.  Nothing is ever "priced in" unless it's bad news, one record close after another with no profit taking, only "investors" loading up on the most grossly overpriced equities in history, day, after day, after day. Welcome to the greatest financial FRAUD in history, and biggest investment JOKE in the world.
Jokers R Us
Jokers R Us Oct 26, 2021 9:54AM ET
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yes we know, now how do I make money..
NUNO LOUREIRO
NUNO LOUREIRO Oct 26, 2021 9:50AM ET
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Before opening was already in record peak
Stephen Fa
Stephen Fa Oct 26, 2021 9:44AM ET
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The value of those earnings in USD terms are inflated by the currency and its under reported inflation
Paul Richard
Paul Richard Oct 26, 2021 9:44AM ET
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so if you had cash you are really taking a beating
Nwankwo Abraham
Nwankwo Abraham Oct 26, 2021 9:21AM ET
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hello
 
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