Major US stocks closed mostly higher on Thursday, breaking a three-day losing streak for the S&P 500, despite another hectic trading day.
The benchmark index rose 0.3% after falling 0.5% in the beginning. It is still losing 0.6% over the week. The Dow Jones Industrial Average was unchanged, while the Nasdaq rose 0.7%.
Most of the 11 sectors of the S&P 500 were up, with most of the gains coming from technology and communications. Companies relying on consumer spending also helped lift the market. Financial and energy companies fell.
Investors followed closely the data on corporate earnings and inflation. They also received more information on the next steps in the Federal Reserve’s policy after the central bank released minutes of its politicians’ meeting last month.…
The protocol, which showed that Fed officials were discussing how the central bank could begin to cut the unprecedented financial support it has provided to the economy since the early days of the pandemic, may have helped give the market an afternoon boost after its dismal start, JJ said. Kinahan, Chief Strategist at TD Ameritrade.
“You start to understand how they are going to do it, and the market really just desperately needs some clarity,” he said. “At least we’re starting to see the game plan.”
Fed officials agreed at their last meeting that if the economy continues to improve, they could start cutting monthly bond purchases as early as next month and complete them by mid-2022.
The S&P 500 Index rose 13.15 points to 4,363.80. The Dow fell 0.53 points, or less than 0.1%, to 34,377.81 points. The high-tech Nasdaq added 105.71 points to 14,571.64 points.
Small stocks also rose. The Russell 2000 Index added 7.70 points, or 0.3%, to 2,241.97 points.
Banks were among the most influential in the market. Jp morgan chase fell 2.6% after its latest profit showed that the bank was struggling to increase revenue at near-zero interest rates. Falling bond yields have also put pressure on a sector that relies on higher yields to charge more lucrative interest on loans. American Express shares fell 3.5% and Capital One Financial shares fell 3.3%.
The 10-year Treasury yield fell to 1.54% from 1.58% on Tuesday night.
Delta Air Lines fell 5.8%, the biggest fall in the S&P 500 after warning investors that rising fuel prices would cast doubt on its ability to remain profitable. Higher labor costs are also projected. United Airlines dropped 3.9% and American Airlines fell 3.3%.
“Crude oil will continue to put pressure on the transport sector, especially airlines,” Kinahan said.
The latest information on inflation was generally received calmly. Consumer prices in September rose by 5.4% compared to last year, which is the highest since 2008. The figure is slightly higher than economists expected. A wide range of businesses have faced supply chain disruptions. delays amid growing demand for goods, and many warned that this would increase costs and worsen their bottom line.
“There is a lot of nervousness and anxiety about inflation right now,” said Christina Hooper, Invesco’s chief strategist for global markets. “We will see a lot of instability and leadership changes; this is just part of the transition we are in. “
Many companies are raising prices to offset higher shipping and raw material costs. Analysts are concerned that higher prices could stunt consumer spending, a key driver of economic growth. The latest Labor Department report showed that the prices of new cars, food, gasoline and restaurant meals jumped in September.
Investors will get more data on consumer spending on Friday when the Commerce Department reports September retail sales.
More major banks are slated to release earnings reports this week. Bank of America, Wells Fargo and Citigroup will release their latest quarterly results on Thursday. Corporate income statements are set to rise after this week, and analysts say it could help show investors a clearer path forward in a volatile market.