Advisor Group chief market strategist Phil Blancato and Eva Agi of Gerber Kawasaki Wealth & Investment Management weigh in on earnings, consumers and the markets.
U.S. stock indexes were modestly higher as traders parsed through earnings reports and digested the disappointing third-quarter gross domestic product reading while awaiting details on the framework of President Biden’s economic plan.
The Dow Jones Industrial Average rose 171 points, or 0.48%, while the S&P 500 index and the Nasdaq Composite index advanced 0.46% and 0.52%, respectively. All three of the major averages finished Wednesday’s session within 1.1% of all-time highs.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35669.89 | +179.20 | +0.50% |
| SP500 | S&P 500 | 4587.69 | +36.01 | +0.79% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15417.856946 | +182.02 | +1.19% |
The U.S. economy grew at a 2% annual rate in the three months through September, missing the 2.7% growth that analysts surveyed by Refinitiv were expecting. The disappointing reading came as consumer spending slowed due to a resurgence in new COVID-19 cases and supply-chain bottlenecks. A separate report showed jobless claims fell to a pandemic-era low.
This as traders await details regarding the framework of Biden’s human infrastructure plan. The topline number is $1.75 trillion, but details remain scarce.
In stocks, Dow component Caterpillar Inc. beat on earnings but missed on revenue as supply chain bottlenecks made it more difficult to fill customer orders. The heavy machinery maker expects sales to improve in the current quarter.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CAT | CATERPILLAR, INC. | 203.34 | +7.10 | +3.62% |
Fellow Dow member Merck & Co. raised its full-year profit forecast following strong demand for its cancer drug Keytruda. The drugmaker saw sales of non-COVID-19 vaccines bounce back as patients took more trips to the doctor’s office.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRK | MERCK & CO., INC. | 86.12 | +4.55 | +5.58% |
Elsewhere, Ford shares hit a 7 year high after the automaker raised its full-year profit guidance on strong demand for trucks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 16.88 | +1.35 | +8.73% |
Hershey Co. reported earnings and revenue that exceeded forecasts and hiked its full-year outlook. The candy maker said stronger-than-expected demand, an improved tax outlook and brand investment would more than offset supply chain disruptions and inflation.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HSY | THE HERSHEY CO. | 180.29 | +0.83 | +0.46% |
Meanwhile, Facebook CEO Mark Zuckerberg is set to announce the company’s new name, which will focus on the metaverse, a network of 3D worlds.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FB | FACEBOOK, INC. | 315.81 | +3.60 | +1.15% |
Apple Inc., Starbucks Corp. and U.S. Steel Corp. are among the companies reporting their quarterly results after markets close.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE, INC. | 152.61 | +3.76 | +2.53% |
| SBUX | STARBUCKS CORP. | 112.58 | -0.93 | -0.82% |
| X | UNITED STATES STEEL CORP. | 23.32 | -0.03 | -0.11% |
In commodities, West Texas Intermediate crude oil slid 39 cents to $82.27 a barrel as gold ticked up $5.10 to $1,803.90 an ounce.
Overseas markets were mostly lower.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Ahead of the European Central Bank’s interest rate decision, Germany’s DAX 30 was trading down 0.07% while France’s CAC 40 jumped 0.61%. Britain’s FTSE 100 was weaker by 0.21%.
In Asia, Hong Kong’s Hang Seng index lost 0.28%, Japan’s Nikkei 225 slid 0.96% and China’s Shanghai Composite declined 1.23%.
