S&P 500 hits all-time high thanks to technological strength and earnings optimism
- GE increases profit forecast for 2021
- UPS surpasses S&P 500 as results exceed e-commerce demand
- Indices: Dow 0.39%, S&P 0.70%, Nasdaq 1.00%
Oct. 26 (Reuters) – The benchmark S&P 500 hit a record high on Tuesday, boosted by Tesla, Nvidia and other tech-related companies, while optimistic results from UPS and GE sparked the optimism around the results season.
Tesla Inc (TSLA.O) rose 5.4%, extending a record-breaking run that helped the electric car leader surpass $ 1,000 billion in market value on Monday after landing its biggest ever order from the Hertz car rental company. Read more
Chipmaker Nvidia (NVDA.O) rose 7.8% to an all-time high, while gains from Amazon (AMZN.O), Apple (AAPL.O) and Microsoft (MSFT. O) helped the Nasdaq outperform.
“Inflation and supply chain issues do not appear to be a problem in the short term as the market is currently only focusing on quarterly performance and with benchmark rates calm this just helps the mood. “said Robert Pavlik, portfolio manager. director at Dakota Wealth in Fairfield, Connecticut.
The top 11 S&P sectors advanced early in the session, with technology (.SPLRCT) and consumer discretionary (.SPLRCD) increasing the most.
Some stellar earnings reports helped the Dow Jones (.DJI) and S&P 500 (.SPX) to highs, boosting investor sentiment in October after concerns about inflation, the Fed cut and the crisis real estate group China Evergrande rocked the markets last month. The tech-heavy Nasdaq (.IXIC) is trading around 0.4% below its September 7 high.
Profits of S&P 500 companies are expected to grow 35.6% yoy in Q3 as market participants assess how companies are dealing with supply chain bottlenecks, labor shortages and inflationary pressures.
Facebook Inc (FB.O) fell 1.8% as the social media giant’s third-quarter revenue was also hit hard by Apple Inc’s (AAPL.O) privacy rules, while advertisers have also been affected by global supply chain disruptions and labor shortages. Read more
Shares of Twitter Inc (TWTR.N), which also generates revenue by selling digital ads, rose 0.1%, ahead of its results on Tuesday.
Eyes are also on quarterly updates from Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O) after the market closes, with a focus on how Google’s ad revenue is performing. .
Meanwhile, data showed U.S. consumer confidence unexpectedly rebounded in October as concerns over high inflation were offset by improving labor market prospects. Read more
At 10:22 a.m. ET, the Dow Jones Industrial Average (.DJI) rose 0.39% to 35,879.05 to hit a new all-time high. The S&P 500 (.SPX) gained 0.70% to 4,598.40, and the Nasdaq Composite (.IXIC) jumped 1% to 15,378.23.
United Parcel Service Inc (UPS.N) jumped 7.1% to overtake the S&P 500 after the delivery company reported better-than-expected quarterly earnings and revenue, supported by strong e-commerce demand. Read more
General Electric Co (GE.N) rose 3.5% after the industrial conglomerate raised its profit forecast for the full year. Read more
Shares of toy maker “Transformers” Hasbro Inc (HAS.O) climbed 5% after posting bullish third-quarter profit even as it warned of a blow to holiday sales due to supply chain issues. Read more
Rising issues outnumbered declines by a 1.53-to-1 ratio on the NYSE and a 1.26-to-1 ratio on the Nasdaq.
The S&P Index recorded 52 new 52-week highs and no new lows, while the Nasdaq recorded 90 new highs and 39 new lows.
(This story was passed on to correct Tesla’s spelling in paragraph 1)
Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel
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