US Equities Kick Off November With New All-Time Highs | Financial market news

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The S&P 500 and the Dow Jones Industrial Average hit record highs on strong corporate earnings.

Through Bloomberg

Stocks hit another record high as strong corporate earnings eclipsed disappointing manufacturing data.

The S&P 500 rebounded from earlier losses, led by gains in energy and consumer discretionary companies. The Dow Jones Industrial Average hit the 36,000 level for the first time. A small-cap gauge climbed 2.7%. A group of favorites from retail traders like GameStop Corp. and AMC Entertainment Holdings Inc. had its best day since late August.

More than 80% of S&P 500 companies reporting third quarter results have beaten Wall Street estimates. This laid the groundwork for a rally in actions since the start of the earnings season. Meanwhile, data showed persistent supply chain challenges weighed on manufacturers in October. Fed officials are meeting this week as investors worry the economy is facing the most widespread supply crunch since the 1973 oil crisis.

“There is no shortage of concerns,” said Evan Brown, head of asset allocation at UBS Asset Management. “I would just say stocks are climbing the wall of worry. We anticipate more turnover as more people believe the economy is on a stronger footing. We should see a rebalancing from growth stocks to value stocks. “

For Morgan Stanley strategist Michael Wilson, the uptrend in equities could continue through the Thanksgiving holidays later this month, but “not much longer” as the Fed is expected to start declining and earnings growth. will slow down again next year.

Some other highlights of the company:

  • Electric vehicle giant Tesla Inc. surged amid a lithium supply deal and the start of the COP26 climate summit.
  • Zillow Group Inc. is looking to sell around 7,000 homes for $ 2.8 billion, according to people familiar with the matter.
  • Moderna Inc. collapsed after its Covid-19 shot failed to gain U.S. regulatory clearance for adolescents.

Here are some events to watch this week:

  • Reserve Bank of Australia policy decision, Tuesday
  • Fed rate decision, US factory orders and durable goods, Wednesday
  • OPEC + meeting on the exit, Thursday
  • Bank of England rate decision Thursday
  • US trade, first jobless claims, Thursday
  • US unemployment, non-farm payroll, Friday

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

  • The S&P 500 rose 0.2% at 4 p.m. New York time
  • The Nasdaq 100 rose 0.3%
  • The Dow Jones Industrial Average rose 0.3%
  • The MSCI World index rose 0.5%

Currencies

  • The Bloomberg Dollar Spot Index changed little
  • The euro rose 0.4% to $ 1.1606
  • The British pound fell 0.1% to $ 1.3662
  • The Japanese yen was little changed at 113.99 per dollar

Obligations

  • The yield on 10-year treasury bills was little changed at 1.56%
  • The German 10-year yield was little changed at -0.10%
  • UK 10-year yield rose three basis points to 1.06%

Merchandise

  • West Texas Intermediate crude rose 0.5% to $ 83.96 a barrel
  • Gold futures rose 0.6% to $ 1,794.90 an ounce


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