The S&P 500 oscillates between gains and losses below 4,700

• The S&P 500 has been oscillating between gains and losses, although it has remained near all-time highs.
• Strong US macro data and a strong end to the third quarter earnings season keep sentiment underpinned for now.
• The Nasdaq 100 Index on the rise amid chipmakers’ strength after Nvidia’s gains.

American stocks are experiencing oscillating trading conditions at the beginning of the US session. The S&P 500 index hovers within a range of more than 30 points (4670-4750) and has traded profit and loss for the day. At the time of writing, the index lost about 0.1% at 4685, 1.0% below the all-time highs recorded earlier in the month.

A much stronger-than-expected third-quarter earnings season has helped propel the index more than 9.0% from its lows in early October below the 4,300 level. The earnings season is coming to an end and the highlight of this week has been the reports from major US retailers, which for the most part have been strong, helping to keep the markets broadly underpinned. Walmart and Target released a report earlier in the week, and analysts interpreted their results as an indication that consumer spending remains strong despite rising inflation, with a good boost heading into the quarter’s holiday shopping season. trimester.

US economic data is also helping to keep equity sentiment broadly supported. According to the October Retail Sales Report, consumer spending grew at a healthy rate last month. According to the November New York and Philadelphia Fed manufacturing surveys, industrial activity is growing at a healthy rate this month. Labor market trends also look positive heading into November, with weekly jobless claims figures released Thursday showing the number of initial weekly claims falling to a new post-pandemic low of 269,000, not far above pre-pandemic levels. .

According to Peter Cardillo, chief market economist at Spartan Capital Securities in New York, “The stock market should resume its year-end rally based on the good earnings season and good macroeconomic news that continues to flow … Inflation it has risen, but for now the consumer is not showing any signs of backing down. And that’s the key. “

Nasdaq 100

Moving on to the other major US indices; The Nasdaq 100 Index has also seen oscillating trade, but for now, it has managed to stay in positive territory above 16,300, about 20 points from the all-time highs recorded in early November at 16,450. The strength of heavyweight chipmakers is supporting the index. Nvidia shares are up more than 9.0% following a strong third-quarter earnings report that saw the company outperform results and delivered strong earnings guidance amid expected gains on its metaverse and data center investments. . This dragged other chip names together and lifted the PHLX semiconductor index by 1.0% and to a new record.

Dow

The Dow is down 0.4%, perhaps reflecting some concern over the news flow surrounding the struggles the Biden Administration is having to push its “Build Back Better” social spending package in Congress. According to the US press, a vote on the $ 1.75 trillion spending package could take place in the House of Representatives as early as Friday and as soon as the US Congressional Budget Office releases its cost estimate. complete for the plan. It is expected to pass in the House, but it faces problems in the Senate.

Moderate Democratic Sen. Joe Manchin has yet to voice his support for the bill and continues to express concern about when it will be issued amid rising inflation in the United States. Your vote will be necessary for Democrats to pass the spending package in the Senate through the budget reconciliation process, which only requires a simple majority. Manchin, currently seen as a thorn in the side of the Biden administration’s attempts to implement its legislative agenda, enjoys a strong approval rating in his domestic state of West Virginia, reinforcing his obstructionist determination.