S&P 500 climbs to record closing high; IBM weighs on the Dow

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  • IBM tumbles after lacking quarterly income estimates
  • Tesla trades greater after Q3 report
  • Indexes: Dow down 0.03%, S&P up 0.30%, Nasdaq up 0.62%
  • VIX volatility index hits lowest shut since Feb. 2020

Oct 21 (Reuters) – The S&P 500 boasted a report closing excessive and its seventh straight session of beneficial properties on Thursday whereas the Nasdaq was boosted by such high-profile shares as Tesla Inc and Microsoft Corp however a tumble in IBM shares weighed on the Dow.

After hitting an intraday report the day gone by the Dow was within the purple for many of Thursday’s session as IBM fell 9.6% after lacking Wall Road estimates for quarterly income as orders in a single enterprise section declined forward of a by-product subsequent month.

Among the many S&P’s 11 main sectors, the largest increase for the benchmark got here from client discretionary shares and the expertise index , whereas vitality shares have been the largest drag as crude oil futures fell on issues about demand.

“For essentially the most half you are coping with a barely risk-off day with individuals going again to extra defensive sectors” together with massive expertise firms, stated Chris Zaccarelli, chief funding officer at Impartial Advisor Alliance in Charlotte, North Carolina.

“You are seeing oil down just a little bit at the moment so probably there’s some world progress issues. You are seeing some inflation issues as properly.”

Nevertheless, the CBOE Volatility index , additionally known as Wall Road’s concern gauge, closed at its lowest stage since February 2020. Shortly after that date, the volatility index had climbed as COVID-19 introduced the worldwide economic system its knees.

The VIX’s low stage implies that buyers don’t see a giant decline or upswing for shares forward regardless of widespread issues about supply-chain issues climbing prices, in keeping with Shawn Cruz, senior market strategist at TD Ameritrade.

“The market could also be saying the supply-chain points which are driving up prices are going to be transitory as a result of markets are discounting mechanisms,” pricing in what buyers count on to occur sooner or later, Cruz stated.

Merchants work on the ground of the New York Inventory Alternate (NYSE) in New York Metropolis, U.S., October 20, 2021. REUTERS/Brendan McDermid

The strategist additionally pointed to earlier information displaying that the variety of Individuals submitting new claims for unemployment advantages dropped to a 19-month low final week, suggesting a tightening labor market.

The Dow Jones Industrial Common fell 6.26 factors, or 0.02%, to 35,603.08, the S&P 500 gained 13.59 factors, or 0.30%, to 4,549.78 and the Nasdaq Composite added 94.02 factors, or 0.62%, to fifteen,215.70.

Analysts have been anticipating S&P 500 third-quarter earnings to rise 33.7% year-on-year, with about 100 firm reviews in thus far, in keeping with the newest information from Refinitiv.

Tesla was the Nasdaq’s largest increase, rising greater than 3%, as buyers digested the electrical automobile maker’s upbeat earnings, regardless of a supply-chain warning.

American Airways completed up 1.9% after the corporate posted a smaller-than-expected quarterly loss, whereas Southwest Airways Co fell 1.6% after it stated it anticipated present quarter revenue to stay elusive.

HP Inc gained 6.9% as brokerages raised their worth targets on the inventory after the private laptop and printer maker forecast upbeat fiscal 2022 adjusted revenue and raised its annual dividend.

Declining points outnumbered advancing ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.00-to-1 ratio favored advancers.

The S&P 500 posted 60 new 52-week highs and no new lows; the Nasdaq Composite recorded 112 new highs and 37 new lows.

On U.S. exchanges 10.07 billion shares modified arms in contrast with the 20-day shifting common of 10.27 billion.

Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru, Sinéad Carew in New York
Enhancing by Arun Koyyur and Matthew Lewis


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