The New York Stock Exchange operates during normal business hours in the Financial District, Wednesday, Oct. 13, 2021, in New York. Stocks wobbled in midday trading on Wall Street Thursday, Nov. 18, as investors reviewed the latest earnings reports from retailers and an update on the employment market. (AP Photo/John Minchillo, File)
By Damian J. Troise and Alex Veiga
A wobbly day on Wall Street ended with a mixed finish for stock indexes Thursday, nudging the S&P 500 and Nasdaq to new highs.
The S&P 500 rose 0.3% and the Nasdaq gained 0.5%, enough for the indexes to set new highs after a modest pullback a day earlier. After an up-and-down run this week, the indexes are on pace for a weekly gain. The Dow Jones Industrial Average slipped 0.2%, its third drop so far this week.
Roughly 67% of the companies in the S&P 500 fell, though gains by large technology companies and big retailers helped offset losses in other sectors as investors sized up the latest batch of corporate earnings reports.
Bond yields edged lower. The yield on the 10-year Treasury note fell to 1.59% from 1.60% late Wednesday.
All told, the S&P 500 rose 15.87 points to 4,704.54, while the Nasdaq gained 72.14 points to 15,993.71.
The Dow dropped 60.10 points to 35,870.95. Small company stocks also declined. The Russell 2000 index fell 13.42 points, or 0.6%, to 2,363.59.
U.S. stocks have been powering mostly higher since early October as companies reported much stronger profits for the summer than analysts expected. Nearly every company in the S&P 500 has turned in their latest financial results, with overall earnings growth of 39%. That far outpaces analysts’ expectations in June for 23% earnings growth for the quarter.
Investors have now shifted much of their focus to the threat from rising inflation. Companies are facing higher raw materials costs and supply chain problems that could crimp profits. Consumers have so far absorbed higher prices, but analysts fear they could eventually rein in their spending if higher prices persist too long.
Solid earnings results helped lift a handful of companies Thursday.
Nvidia jumped 8.3% for the biggest gain in the S&P 500 after the maker of graphics chips for gaming and artificial intelligence reported strong third-quarter financial results. Other chipmakers also gained ground. Advanced Micro Devices rose 2.4% and Micron Technology rose 2.1%.
Companies that rely on consumer spending on goods and services also fared well following solid earnings reports from retailers. Macy's surged 21.2% after the department store chain handily beat Wall Street’s third-quarter profit forecasts. Kohl's also reported encouraging earnings and jumped 10.6%.
Financial companies had some of the broadest losses. American Express fell 1.9% and insurer Aflac fell 1.8%.
Consumer staples makers and industrial companies also fell. Kraft Heinz slid 3.3% and General Electric fell 1.3%.
Investors received a positive update on the closely watched employment market, which is viewed as a key factor in the economy's continued recovery.
The Labor Department said that the number of Americans applying for unemployment benefits fell for the seventh straight week to a pandemic low of 268,000.
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
