Nasdaq hits record highs with bright earnings news

Stock prices almost rose during Thursday’s trading, offsetting the pullback seen later in the previous session. The rise on the day set tech-heavy Nasdaq and S & P 500 record highs.

We saw the key averages rising further towards the close of the deal. The Dow rose 239.79 points (0.7%) to 35,730.48, the Nasdaq rose 212.28 points (1.4%) to 15,448.12, and the S & P500 rose 44.74 points (1%) to 4,596.42.

The positive reaction to the latest earnings news from big companies helped stocks update the uptrend seen in recent sessions.

Ford’s share surged after auto giants reported much better-than-expected third-quarter earnings and raised guidance for the full year.

Brewer Anheuser-Busch InBev (BUD) also surged after raising its full-year forecast due to strong third quarter.

Caterpillar (CAT) and Merck (MRK) shares also showed a strong upward trend after heavy equipment manufacturers and pharmaceuticals reported higher-than-expected quarterly earnings.

Meanwhile, eBay (EBAY) stocks were under pressure after the e-commerce giant reported better results than expected in the third quarter, but provided disappointing guidance.

In addition to Wall Street’s positive sentiment, reports from the Ministry of Labor showed that first unemployed claims fell for the fourth straight week of the week ending October 23.

Initial unemployment claims fell to 281,000, down 10,000 from last week’s revision level of 291,000, according to the report. Economists expected unemployment claims to remain the same compared to the 290,000 originally reported last week.

With a slight decline, unemployed billing has fallen to its lowest level again since reaching 256,000 in the week ending March 14, 2020.

Meanwhile, traders could significantly ignore reports from the Commerce Department showing that the pace of US economic growth slowed dramatically in the third quarter and see the data as old news.

According to the Department of Commerce, real gross domestic product increased 6.7% in the second quarter and then 2.0% in the third quarter. Economists expected the pace of GDP growth to slow to 2.7%.

The larger-than-expected slowdown in GDP growth was due to a 1.6% increase in consumer spending in the third quarter after a 12.0% surge in the second quarter.

Sector news

Computer hardware stocks rose sharply on the day, with the NYSE Arca Computer Hardware Index rising 2.4%.

Semiconductor stocks also showed great power, as reflected in the 2.3% rise in the Philadelphia Semiconductor Index.

The stake in Wolfspeed (WOLF), formerly known as Cree, soared after the company reported a narrower loss than expected in the first quarter.

Biotechnology stocks also performed well on the day, with the NYSE Arca Biotechnology Index rising 1.8%.

Inventories of oil services, housing and commercial real estate also rose significantly, and gold inventories slowed down despite rising precious metal prices.

Other markets

In overseas transactions, stocks market During trading on Thursday, it fell almost across the Asia Pacific region. Japan’s Nikkei 225 Index fell 1%, while China’s Shanghai Composite Index fell 1.2%.

Meanwhile, major European markets performed differently on the day. France’s CAC 40 index rose 0.8%, while the UK’s FTSE 100 index and Germany’s DAX index both fell 0.1%.

In the bond market, government bonds have receded after a significant rise in government bonds in the last few sessions. Since then, the yield on benchmark 10-year bonds, which move in the opposite direction of price, has risen 3.9 basis points to 1.568%.

Future outlook

Earnings news on Friday may continue to be in the limelight, with Amazon (AMZN) and Apple (AAPL) reporting quarterly results after today’s closing.

Energy giants Chevron (CVX) and ExxonMobil (XOM) will also report results before the deal opens on Friday.

Reports on personal income and spending may also draw attention, but trade activity could be somewhat curtailed ahead of next week’s Federal Reserve Board.

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Nasdaq hits record highs with bright earnings news

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