- Qualcomm jumps on upbeat outlook
- Weekly jobless claims fall more than expected
- Moderna tumbles as it sees lower COVID-19 vaccine sales
- Indexes: Dow down 0.25%, S&P up 0.24%, Nasdaq adds 0.55%
Nov 4 (Reuters) – The S&P 500 and the Nasdaq hit record highs on Thursday on stellar earnings reports, with investors looking past the Federal Reserve’s asset tapering plan as borrowing costs remain low.
The Dow slipped from an all-time closing high hit on Wednesday, dragged down by big banks JPMorgan Chase & Co (JPM.N) and Goldman Sachs Group (GS.N) which slipped 1.7% and 2.6% despite steepening of the yield curve.
Electronic Arts Inc (EA.O) and rival Take-Two Interactive Software Inc (TTWO.O) gained 2.9% and 2.3%, respectively, after they boosted their 2021 adjusted sales forecasts on strong gaming boom. read more
The S&P 500 banks sub-index (.SPXBK) fell 2.2%.
On Wednesday, a widely expected move by the Fed on announcing its plan to start tapering its monthly bond purchases beginning this month while staying patient on raising interest rates also helped sentiment. read more
“We have had a very strong earning season and the Fed has followed through on what it was preparing markets for and investors generally get happy if they get what they expect,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
“The last time the Fed tapered, it took more than a year for it to hike rates and it looks like that’s what is going to happen going ahead too, with only one-third of the market factoring hikes next year.”
A cheery third-quarter earnings season, coupled with an upbeat commentary about future growth from corporate America, has helped Wall Street largely dismiss concerns around rising prices, supply chain snags and a mixed macro-economic picture.
Data showed the number of Americans filing new claims for unemployment benefits fell to a fresh 19-month low last week. It will be followed by a more comprehensive nonfarm payrolls report on Friday. read more
At 11:56 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 89.73 points, or 0.25%, at 36,067.85, the S&P 500 (.SPX) was up 11.41 points, or 0.24%, at 4,671.98, and the Nasdaq Composite (.IXIC) was up 87.46 points, or 0.55%, at 15,899.04.
Declining issues outnumbered advancers for a 1.15-to-1 ratio on the NYSE and for a 1.36-to-1 ratio on the Nasdaq.
The S&P index recorded 69 new 52-week highs and four new lows, while the Nasdaq recorded 183 new highs and 25 new lows.
Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Bernard Orr and Maju Samuel
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