Stock market today: S&P 500 nears record high on strong earnings
US stocks edged higher on Wednesday, putting the S&P 500 within range of its September closing high, as strong corporate earnings collide with lingering concerns about inflation and rising Treasury bond yields.
Soaring energy prices, supply chain disruptions and labor shortages are adding cost and margin pressures for a multitude of companies this earnings season, with the corporate giants. consumer brands Procter & Gamble (PG) – Get the Procter & Gamble Company Report and Nestlé is forecasting price increases that will likely keep inflation on the rise over the next few months.
In fact, Bank of America’s close survey of fund managers this month noted that inflation remains the main “tail risk” in the market, followed by weakness in China and a new wave. COVID infections during the winter.
Still, with collective profits from the S&P 500 set to rise 32% from last year to $ 421.4 billion – and big tech groups like Apple (AAPL) – Get the Apple Inc. (AAPL) report, Facebook (FB) – Get the Class A report from Facebook, Inc., Microsoft (MSFT) – Get the report from Microsoft Corporation (MSFT) and Amazon (AMZN) – Get the Amazon.com, Inc. report yet to report – stocks have been able, for now at least, to ignore inflation concerns and the Federal Reserve’s likely reaction to them.
Wednesday’s trading could reverse this trend, however, and with Tesla (TSLA) – Get the Tesla Inc report and IBM (IBM) – Obtain the International Business Machines (IBM) report reporting after the closing bell and 10-year Treasury yields hitting 1.641%, the Dow Jones Industrial Average rose 130 points in the opening half hour of trading.
The S&P 500, meanwhile, added 15 points to last night’s close of 4,519.63 points, while the Nasdaq Composite rose 15 points.
In terms of individual stocks, Novavax (NVAX) – Get the report from Novavax, Inc. stocks were most active at the start of trading, plunging more than 15% amid reports it faces delays in production of its coronavirus vaccine candidate.
Netflix (NFLX) – Get the Netflix, Inc. (NFLX) report stocks were also active, falling 1.7% after the streaming entertainment service blasted Wall Street forecasts for third-quarter earnings and subscriber growth thanks in part to blockbuster shows such as Squid Game and Bridgerton.
On the positive side, Ford Motor Co (F) – Get the report from Ford Motor Company jumped 3% following an upgrade and increase in Credit Suisse’s price target ahead of next week’s third quarter earnings report.
Tesla shares were also down 0.15%, ahead of the group’s third-quarter profits after markets closed, with investors focusing on the clean-energy automaker’s plans to challenge both a slowdown in China and the continuing shortage of semiconductors in the last three months of the year.
Outside of equities, oil prices have retreated from nearly seven-year highs amid reports that China is poised to bring record coal prices under control – a major trigger for the recent price spike in China. energy – and ahead of today’s update on national stocks and export data from the Directorate of Energy.
WTI futures for December delivery fell 89 cents during the session to $ 81.55 each, while contracts from Brent for the same month, the global benchmark, fell 86 cents to 84 , $ 23 per barrel.
In other markets, Bitcoin continued its ascent, surpassing $ 60,000.00 for the first time since the spring, as America’s first exchange-traded fund based on bitcoin futures carried more than $ 570 million. dollars in assets during its first day – a sign that investors remain confident in the viability of the world’s largest digital currency.
In overseas markets, the European Stoxx 600 edged up 0.08% at midday in Frankfurt amid renewed emphasis on inflation following the shocking resignation of the president of the Bundesbank, Jens Weidmann, who will step down later this year after a decade as head of the powerful Central Bank.