Dow, S&P 500 edge up to fresh records amid earnings deluge

NEW YORK (AFP) – The Dow and S&P 500 again finished at records on Tuesday (Oct 26) following another round of mostly good earnings and strong consumer confidence and housing data.

The Dow Jones Industrial Average finished at 35,756.88, up less than 0.1 per cent to finish at its third straight record.

The broad-based S&P 500 gained 0.2 per cent to 4,574.79 to end at its third record in four sessions, while the tech-rich Nasdaq Composite Index advanced 0.1 per cent to 15,235.71.

The rally has been propelled by earnings that have been generally better than expected, as many companies have managed to pass on higher costs to consumers amid strong demand.

But Tuesday’s market also got support from data showing a rebound in consumer confidence this month after falling for three consecutive months as fears about the latest wave of Covid-19 infections diminished.

Also, sales of new homes in the United States soared 14 per cent last month from August as buyers snapped up real estate despite high prices and scarce supply.

Among individual companies, Facebook tumbled 3.9 per cent following a mixed earnings report.

The social media giant reported US$9.2 billion (S$12 billion) in profits, topping estimates, but revenues fell short of expectations.

The company, which faces a storm of criticism over its handling of disinformation and other public policy questions, authorised US$50 billion in share repurchases.

Wall Street hits record but Facebook weighs

Other large technology companies such as Apple and Amazon advanced on Tuesday ahead of earnings later in the week.

Among other companies reporting results, United Parcel Service jumped 7 per cent, Hasbro won 3.2 per cent and Lockheed Martin dived 11.8 per cent.

Inflation, labour still issues for stocks: Economist

Beware the positive housing data: Economist

 

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