The New York Stock Exchange rose despite the disappointing earnings of major companies. In particular, the three major indexes closed at all-time highs at the same time.
At the New York Stock Exchange (NYSE) on the 29th (Eastern Time), the Standard & Poor’s (S&P) 500 index closed at 4,605.38, up 8.96 points (0.19%) from the previous day.
The Nasdaq Composite Index, centered on technology stocks, finished trading at 15,498.4, up 50.3 points (0.33%) from the battlefield.
The Dow Jones Industrial Average closed at 35,819.56, up 89.08 points (0.25%) from the previous day.
The Russell 2000 index, which reflects small and mid-cap stocks, closed at 2,296.69, down 1.29 points (-0.06%) from the previous day.
The CBOE VIX volatility index closed at 16.26, down ▽0.27 points (-1.63%) from the previous market.
The six stocks that Seohak Ants invested in were Apple (AAPL) 149.81 (-1.81%↓), Microsoft (MSFT) 331.62 (2.24%↑), Tesla (TSLA) 1114. (3.43%↑), and Nvidia (NVDA). ) 255.67 (2.51%↑), Amazon.com (AMZN) 3372.41 (-2.15%↓), and Alphabet A (GOOGL) 2960.9 (1.51%↑).
According to Yonhap News, investors were watching companies’ performance and price indicators.
As Apple and Amazon’s quarterly earnings fell short of market expectations, the index started lower at the opening, but succeeded in reversing in the afternoon.
The three major indices simultaneously broke all-time highs based on closing prices.
The S&P 500 and Nasdaq Composites rose 6.9% and 7.3%, respectively, this month, recording their biggest gains since November last year.
Apple said in its earnings report after the market close the previous day that supply chain constraints had a greater impact than expected. iPhone sales fell short of market expectations, and sales also fell short of market expectations. According to CNBC, it is the first time since May 2017 that Apple’s sales have been below Wall Street’s expectations.
Amazon’s third-quarter net profit and sales also fell far short of market expectations. Amazon’s fourth-quarter revenue estimate fell short of Wall Street’s expectations, and the stock fell.
Shares of Apple and Amazon closed down 1.8% and 2.1%, respectively.
Shares of ExxonMobil and Chevron rose by 0.2% and 1%, respectively, as the company announced better-than-expected earnings and sales.
Microsoft’s share price rose more than 2% on the same day and Apple’s share price fell, resulting in Microsoft’s market cap exceeding that of Apple’s. According to CNBC data, Microsoft’s market cap reached $2.4 trillion, while Apple’s market cap was estimated at $2.458 trillion.
US personal consumption spending growth slowed from the previous month, but it was in line with market expectations.
The Commerce Department reported that personal consumption spending rose 0.6% in September compared to the previous month. This is in line with the 0.6% increase expected by experts compiled by the Wall Street Journal (WSJ), but slower than the 1.0% increase recorded in the previous month.
Consumer spending by U.S. households is the driving force for growth, accounting for two-thirds of the U.S. economy.
Personal income (after-tax basis) in September decreased by 1.0% from the previous month, turning from an increase of 0.2% in the previous month to a downward trend. As incomes fell, the personal savings rate fell to 7.5% in September from 9.2% in the previous month. This is the lowest since December 2019.
The personal consumption expenditure (PCE) price index favored by the Federal Reserve rose 0.3% in September from the previous month and up 4.4% from the previous year. This is higher than the 0.3% and 4.2% gains recorded in August.
Excluding the volatile food and energy prices, the core PCE price index rose 0.2% MoM and 3.6% YoY in September.
The 3.6% year-on-year increase in the core PCE price index was the highest since May 1991 and has been maintained at the same level since June.
As inflationary pressures do not subside, concerns that the Federal Reserve (Fed) should tighten at an early stage are also expected to grow.
The final value of the University of Michigan Consumer Attitude Index for October was 71.7, down from 72.8 in the previous month. The figure slightly exceeded the preliminary estimate of 71.4 and the Wall Street Journal (WSJ) forecast of 71.2, both of which were expected by experts. However, it is still significantly lower than the 101.0 recorded in February 2020, before the pandemic.
By sector, stocks related to real estate, energy, and utilities declined, while stocks related to health, telecommunications and technology rose.
New York Stock Exchange experts said that the companies that reported earnings appeared to have weathered headwinds such as supply chain constraints and inflationary pressures relatively well.
“It seems appropriate to say that so far companies have effectively weathered headwinds, benefiting from strong demand,” said Angelo Kurkapas, investment strategist at Edward Jones.
“With about half of the companies reporting earnings, profitability remains fairly resilient thanks to strong demand and pricing power,” he said.
“However, it is likely that input cost pressure will eventually reduce sales and lower profit margins,” he warned.
According to the Chicago Mercantile Exchange (CME) FedWatch, the Federal Funds (FF) interest rate futures market reflected an 88.7% chance of a rate hike in September next year.
On the Chicago Board Options Exchange (CBOE), the Volatility Index (VIX) fell 0.27 points (1.63%) to 16.26.
Kim Myung-soo [email protected]