The S&P 500 and Nasdaq closed at new all-time highs on Thursday, although the two indices started the session subdued or even with a negative sign. The investment climate was boosted by the encouraging economic data released today in the US but also the better-than-expected results announced by Nvidia, Macy’s and Kohl’s, continuing the balance of strong corporate profits for the third quarter, amid concerns about the inflation rally.
The same pace was not followed by the Dow Jones, which closed with losses, but far from the lows of the day (it had reached a loss of 250 points), with the “dip” of Cisco and their losses affecting it.
In more detail, at macro As of today, the number of Americans applying for new unemployment benefits fell last week, slipping closer to the levels before the outbreak of the coronavirus, as the labor market recovery continues to gain momentum.
Particularly, Initial applications for state unemployment benefits fell by 1,000 to the seasonally adjusted size of 268,000 for the week ended Nov. 13, according to the U.S. Department of Labor.
This is the lowest level since the outbreak of the pandemic in the US more than 20 months ago. Analysts’ average estimates in a Reuters poll put the applications at 260,000.
In addition, the Federal Reserve of Philadelphia’s manufacturing index jumped to 39 out of 23.8 points.
At the same time, assuming that Inflation has persisted for longer than expected, proceeded one of the most “aggressive” executives of the Federal Reserve.
“Now, I’m going to admit that it lasts longer than I expected. I expected the supply chain to be more resilient than we’ve seen,” said Chicago Fed Chairman Charles Evans.
By the middle of next year, the Fed will know if the supply chain is working and if prices are going to return. “There is more uncertainty than I expected a few months ago,” Evans said.
At the same time, he said that a sudden cessation of bond purchases by the Fed would not have a good impact, as he reiterated the stance that the central bank will hold until the middle of next year to complete the tapering and then start thinking about when it is. the right time to raise interest rates.
In the field of results, the Nvidia announced better-than-expected quarterly results, recording record sales. In particular, the company reported third-quarter net income of $ 2.46 billion, or 97 cents per share, compared to $ 1.34 billion, or 53 cents per share, in the same period last year. Revenue hit a record $ 7.1 billion, up 50 percent from $ 4.73 billion in the same quarter last year. Its share recorded a “jump” of 8.25%.
In the meantime, his performance 10-year government bond of the USA fell by 1.8 basis points to 1.586%, while the dollar recorded losses of 0.2%.
Indicators – Statistics
On the board, the Dow fell 0.17% to 35,870.95 points, the widest S&P 500 added 0.34% to 4,704.54 points and the technological Nasdaq increased by 0.45% to 15,993.71 points.
From 30 shares that make up the Dow, 11 closed with a positive sign and 19 with a negative. Profits were led by Apple (+ 2.85%) and Home Depot with an increase of 2.79%, while Cisco pushed the index down with a “dip” of 5.51% –in the aftermath of the conflicting results he announced– and American Express with losses of 1.89%.
Her share Macy’s Inc. marked a rally of more than 21% after the announcement of the results for the third quarter that exceeded expectations, while the Kohl’s Corp gained 10.6% since she also announced better results than estimated.
Deere & Co added about 1% after reaching a new agreement with the employees and the strike that had been going on since October 14 was canceled.