Closing Comment — Tuesday, October 26, 2021
DJIA: 35,756.88, up 15.73
S&P 500: 4,574.79, up 8.31
Nasdaq Composite: 15,235.71, up 9.00
Dow, S&P 500 inch to records
U.S. stocks finished higher on Tuesday as investors digested a flurry of corporate earnings results and economic updates. The Dow inched up for a third straight session, adding 15 points, while the S&P 500 rose 0.2%, with both benchmarks notching new record levels. The Nasdaq Composite edged 0.1% higher. Developments in Washington also buoyed sentiment, with Democratic lawmakers reportedly nearing a social spending deal, which would pave the way for a House vote on the bipartisan infrastructure plan.
In earnings, Facebook dropped 3.9% as a disappointing revenue outlook overshadowed robust user growth and a $50 billion buyback plan. In Industrials, United Parcel Service jumped 7.6% after easily topping Wall Street estimates and increasing its 2021 operating margin projections. Meanwhile, defense contractor Lockheed Martin slumped 11.6% following a revenue miss and downbeat guidance. Elsewhere, Hasbro gained 3.2% after exceeding expectations despite warning that supply chain bottlenecks would likely pressure holiday sales. In other corporate news, chipmaker NVIDA surged 7% to a fresh all-time high amid positive analyst commentary.
On the data front, the Conference Board’s gauge of consumer confidence unexpectedly improved in October, ending a three-month stretch of declines. Separately, new home sales surged 14% in September to the highest level since March. Additionally, S&P CoreLogic Case-Shiller’s measure of home prices in 20 U.S. cities moderated for the first time in 14 months in August. Treasuries were mixed, with the yield on the 10-year note down two basis points to 1.61%. In commodities, WTI crude rallied 1% to $84.62/barrel.
Midday Comment — Tuesday, October 26, 2021
DJIA: 35,790.08, up 48.93
S&P 500: 4,579.64, up 13.16
Nasdaq Composite: 15,263.16, up 36.45
Dow, S&P 500 at records; earnings in focus
U.S. stocks are higher near mid-session Tuesday as investors digest a flurry of corporate earnings results and economic updates. The Dow is adding 48 points, while the S&P 500 is up 0.3%, with both benchmarks notching new record levels. The Nasdaq Composite is climbing 0.3%.
In earnings, Facebook is dropping 4% as a disappointing revenue outlook is overshadowing robust user growth and a $50 billion buyback plan. In Industrials, United Parcel Service is jumping 7.3% after easily topping Wall Street estimates and increasing its 2021 operating margin projections. General Electric is up 2.4% on stronger-than-anticipated free cash flow. Elsewhere, Hasbro is gaining 3.6% after exceeding expectations despite warning that supply chain bottlenecks would likely pressure holiday sales. Breadth is negative on issues by 5:4 on the NYSE and 7:6 the Nasdaq. Composite NYSE volume is greater than 1.7 billion shares.
On the data front, the Conference Board’s gauge of consumer confidence unexpectedly improved in October to 113.8 from 109.8, ending a three-month stretch of declines. Separately, an update from the Richmond Fed showed manufacturing activity in the region grew more than forecasted during the same period. Another release revealed new home sales surged 14% in September to the highest level since March. Additionally, S&P CoreLogic Case-Shiller’s measure of home prices in 20 U.S. cities moderated for the first time in 14 months in August, though the 19.7% year-over-year gain remained elevated near July’s record pace. Treasuries are little changed, with the yield on the 10-year note holding steady at 1.63%. In commodities, WTI crude is rallying 1% to $84.56/barrel.
Opening Comment — Tuesday, October 26, 2021
DJIA: 35,827.75, up 86.60
S&P 500: 4,589.72, up 23.24
Nasdaq Composite: 15,335.29, up 108.58
Stocks open at records; Earnings in focus
U.S. stocks are higher in early trading Tuesday as Wall Street digests a flurry of corporate earnings results. Investors are also awaiting a slew of profit tallies from key technology-related companies after the closing bell, including Microsoft and Google parent Alphabet. The Dow is adding 86 points, while the S&P 500 is up 0.5%, with both benchmarks trading at fresh record levels. The Nasdaq Composite is adding 0.7%, trading within 0.3% of its September 7 all-time high.
In earnings, Facebook is losing 1.4% as investors assess the social media giant’s disappointing revenue outlook against robust user growth and a $50 billion buyback plan. In industrials, United Parcel Service is jumping 6.9% after easily topping Wall Street’s expectations and increasing its 2021 operating margin projections. General Electric is climbing 4.3% as stronger-than-anticipated results from its aviation segment propelled the conglomerate to beat analysts’ earnings projections. Elsewhere, Hasbro is gaining 4.3% after exceeding expectations amid a strong showing from its TV and film-related toy segment. Breadth is roughly even on both the NYSE and Nasdaq.
On the data front, the Conference Board’s gauge of consumer confidence unexpectedly climbed in October to 113.8 from a prior seven-month low of 109.8. Meanwhile, S&P CoreLogic Case-Shiller’s measure of home prices in 20-U.S. cities moderated for the first time in 14 months in August, still rising 19.7% year-over-year after surging the most on record in July (+20%). Meanwhile, new home sales surged 14% in September, rebounding from previous month’s 1.4% decline. Treasuries are little changed, with the yield on the 10-year note holding steady at 1.63%.