Market Snapshot
briefing.com
| Dow | 35730.48 | +239.79 | (0.68%) | | Nasdaq | 15448.11 | +212.28 | (1.39%) | | SP 500 | 4596.42 | +44.74 | (0.98%) | | 10-yr Note | -1/32 | 1.556 |
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| | NYSE | Adv 2241 | Dec 1030 | Vol 875.3 mln | | Nasdaq | Adv 3153 | Dec 1318 | Vol 5.6 bln |
Industry Watch
| Strong: Real Estate, Consumer Discretionary, Industrials |
| | Weak: Communication Services |
Moving the Market
-- S&P 500 and Nasdaq Composite close at record highs
-- Good earnings news rubbed off on Apple (AAPL) and Amazon.com (AMZN) in front of their earnings reports after the close
-- Infrastructure optimism
-- Weekly jobless claims declined to new post-pandemic low, while advance Q3 GDP missed expectations
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S&P 500 and Nasdaq close at record highs
28-Oct-21 16:20 ET
Dow +239.79 at 35730.48, Nasdaq +212.28 at 15448.11, S&P +44.74 at 4596.42
[BRIEFING.COM] The S&P 500 (+1.0%) and Nasdaq Composite (+1.4%) rallied to record closes on Thursday, bolstered by better-than-expected earnings reports, mega-cap strength, and infrastructure optimism. The Dow Jones Industrial Average gained 0.7% while the Russell 2000 rose 2.0%. The Nasdaq also set an intraday record high.
Most companies continued to exceed expectations for the third quarter, and the good news seemed to rub off on Apple (AAPL 152.57, +3.72, +2.5%) and Amazon.com (AMZN 3446.57, +54.08, +1.6%) in front of their earnings reports after the close. Unlike yesterday, the gains were distributed beyond the mega-caps.
All 11 S&P 500 sectors closed higher with gains ranging from 0.3% (communication services) to 1.5% (real estate). The Invesco S&P 500 Equal Weight ETF (RSP 158.04, +1.59) gained 1.0% after falling 1.3% yesterday. Advancing issues outpaced declining issues by more than a 2:1 margin at the NYSE.
Dow components Merck (MRK 86.55, +5.01, +6.1%) and Caterpillar (CAT 204.09, +7.96, +4.1%) were two earnings standouts along with Ford Motor (F 16.86, +1.35, +8.7%). MasterCard (MA 333.03, -2.69, -0.8%) and Comcast (CMCSA 51.90, -0.54, -1.0%), however, failed to excite shareholders with their EPS beats.
Separately, Facebook (FB 316.92, +4.70, +1.5%) confirmed a name change to "Meta" and a ticker change to "MVRS," starting Dec. 1.
On infrastructure, President Biden announced the framework for the $1.75 trillion budget reconciliation bill that he urged Congress to support. While Democrats remained divided on the bill, investors were hopeful that an agreement could happen soon so that the House could vote on the $1 trillion bipartisan infrastructure bill.
The market also reacted positively to mixed economic data: real GDP increased at an annual rate of 2.0% in the third quarter (Briefing.com consensus 2.4%), according to the advance estimate, while initial claims were 281,000 (Briefing.com consensus 291,000) for a new post-pandemic low.
Underscoring the slowdown in the third quarter, real final sales of domestic product, which exclude the change in private inventories, were down 0.1% after increasing 8.1% in the second quarter. The silver lining, however, was that headline print was better than feared by some accounts and the news was backwards-looking.
The 2-yr yield increased two basis points to 0.50% after peaking at 1.56% overnight, and the 10-yr yield increased four basis points to 1.57%. The U.S. Dollar Index fell 0.5% to 93.37. WTI crude futures ($82.79/bbl, +0.11, +0.1%) settled little changed.
Reviewing Thursday's economic data:
- The Advance Q3 GDP report indicated real GDP increased at an annual rate of 2.0% (Briefing.com consensus 2.4%), down noticeably from the 6.7% growth rate reported for the second quarter, as personal spending growth decelerated to just 1.6% from 12.0% in the second quarter. The GDP Price Deflator was up 5.7% (Briefing.com consensus 5.5%) after increasing 6.1% in the second quarter.
- The key takeaway from the report is that it was weaker than meets the eye. Real final sales of domestic product, which exclude the change in private inventories, were down 0.1% after increasing 8.1% in the second quarter. That was the weakest showing since the second quarter of 2020.
- For the week ending October 23, initial claims declined by 10,000 to 281,000 (Briefing.com consensus 291,000), marking the lowest level for initial claims since March 14, 2020. Continuing claims for the week ending October 16 decreased by 237,000 to 2.243 million, which was also the lowest level since March 14, 2020.
- The key takeaway from the report rests in the improving trend in jobless claims, which is what should be seen when taking into account the massive number of job openings and the recurring acknowledgment of labor constraints heard from companies reporting earnings.
- Pending home sales decreased 2.3% m/m in September (Briefing.com consensus 1.0%) following an unrevised 8.1% increase in August.
Looking ahead to Friday, investors will receive Personal Income and Spending for September, PCE Prices for September, the final University of Michigan Index of Consumer Sentiment for October, the Employment Cost Index for the third quarter, and the Chicago PMI for October.
- S&P 500 +22.4% YTD
- Nasdaq Composite +19.9% YTD
- Dow Jones Industrial Average +16.7% YTD
- Russell 2000 +16.4% YTD
Crude futures settle fractionally higher
28-Oct-21 15:30 ET
Dow +134.23 at 35624.92, Nasdaq +183.41 at 15419.24, S&P +33.88 at 4585.56
[BRIEFING.COM] The S&P 500 is up 0.8% and on track to close at a record high. The Russell 2000 outperforms with a 1.8% gain.
Looking at the S&P 500 sectors shows green across the board. The consumer discretionary (+1.2%), financials (+0.9%), and industrials (+0.9%) sectors are up around 1%, while the utilities (+0.1%) and consumer staples (+0.1%) sectors are up just 0.1%.
WTI crude futures settled higher by 0.1%, or $0.11, to $82.79/bbl. |
