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.
Updated on November 18, 2021, at 5:07 p.m. ET.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
