S&P 500 Almost Hits Record High 10/20 15:54
Solid earnings from health care companies helped send stocks higher on Wall
Street Wednesday and pushed the benchmark S&P 500 to the brink of another
(AP) -- Solid earnings from health care companies helped send stocks higher
on Wall Street Wednesday and pushed the benchmark S&P 500 to the brink of
another record high.
The market has been gaining ground as investors shift their focus to the
latest round of corporate earnings. Stocks have been choppy for weeks as rising
inflation and lackluster economic data raised concerns about the path ahead for
the economic recovery.
The S&P 500 rose 16.56 points, or 0.4%, to 4,536.19. It's the sixth straight
gain for the benchmark index and puts it less than a point from the all-time
high it set on Sept. 2.
The Dow Jones Industrial Average rose 152.03 points, or 0.4%, to 35,609.34.
The Nasdaq fell 7.41 points, or less than 0.1%, to 15,121.68.
"The reason we're seeing this rally over the last week is that company
earnings are looking really good," said Sylvia Jablonski, chief investment
officer at Defiance ETFs. "Most companies are managing inflationary pressures
and pricing issues and that's helping to alleviate concerns about overvaluation
Wall Street cheered solid earnings from a variety of health care companies.
Abbott Laboratories, which makes infant formula, medical devices and drugs,
rose 3.3% after handily beating analysts' third-quarter profit forecasts.
Health insurer Anthem rose 7.7% after also reporting strong financial results.
Technology stocks lagged the broader market.
Bond yields rose. The yield on the 10-year Treasury rose to 1.65% from 1.63%
Netflix fell 2.2% after forecasting earnings for its current quarter that
were below analysts' estimates.
PayPal fell 4.9% following reports that it is considering buying digital
pinboard and shopping tool Pinterest, which jumped 12.8%.
The price of Bitcoin rose above $66,000 for the first time. The gains came a
day after the first exchange-traded fund linked to Bitcoin futures attracted
huge interest from investors looking to get into the surging field of
Investors are busy reviewing the latest report cards from companies as they
try to get a clearer understanding of how rising inflation and the lingering
threat from COVID-19 will affect the economy.
A key concern remains supply chain disruptions and rising materials costs
cutting into profits for many companies. Higher costs for companies could mean
higher prices for consumers, which could threaten spending that is supporting
Oilfield services company Baker Hughes fell 5.7% after reporting weak
third-quarter financial results, partly because of supply chain problems and
higher costs. Brinker International, which operates Chili's Grill & Bar, fell
9.7% after its fiscal first-quarter profit fell far short of analysts'
forecasts as it faces higher commodity and labor costs.
Investors seem to be taking the impact from rising inflation on companies in
stride, said Greg Bassuk, CEO at AXS Investments.
"Without big surprises on the downside, or something really outsized, the
bulls are overtaking the bears," he said.
Rising inflation has also put a sharper focus on the Federal Reserve and its
plans to start trimming bond purchases that have helped keep interest rates
low. The central bank maintained through most of the year that inflation would
likely be temporary and tied to the economic recovery, but it has grown more
concerned about rising inflation persisting.
Railroad operator CSX gained ground in after-hours trading after reporting
solid financial results, while Tesla slipped after reporting its results.
There are still several large companies on deck to release their earnings
this week. American Airlines, Southwest Airlines and Union Pacific will report