Wall Avenue shakes off Amazon, Apple weak spot to finish modestly greater By Reuters


© Reuters. FILE PHOTO: People are seen on Wall Street in front of the New York Stock Exchange (NYSE) in New York City, the United States, March 19, 2021. REUTERS / Brendan McDermid / File Photo

By Chuck Mikolajczak

NEW YORK (Reuters) – U.S. stocks shrugged off early declines and closed the last day of trading of the month with modest gains on Friday as a surge from Microsoft helped offset declines at Amazon and Apple after disappointing quarterly earnings by the online retailer and iPhone manufacturer.

Microsoft Corporation (NASDAQ 🙂 closed at a record high of $ 331.62 and ended the session with a market cap of $ 2.49 trillion, which is Apple Inc’s (NASDAQ 🙂 market cap of around $ 2.48 trillion surpassed.

Apple lost 1.81% after warning that the impact of supply chain disruptions will be even worse in the current Christmas Quarter, while Amazon.com Inc (NASDAQ 🙂 fell 2.15% as sales fell in the face of labor shortages forecast in the Christmas quarter.

“Today’s insight is the resilience to the overall index, even though 10% of market capitalization in two companies is disappointing and the market is still flat. It’s the resilience of the market, it suggests that the trend is still intact. “

said David Joy, Chief Marketing Strategist at Ameriprise Financial (NYSE 🙂 in Boston.

“Perhaps the numbers came as a surprise to the analyst community, but not the reason for the disappointment, so there is still a general view that this is not a loss of business but a postponed business and the economy and market continue to trend upwards is.” . “

This rose by 89.08 points or 0.25% to 35,819.56, the increase by 8.96 points or 0.19% to 4,605.38 and the increase by 50.27 points or 0.33% to 15,498.39 .

The S&P 500 was down as much as 0.65% the day before. The benchmark index rose 1.3% this week, its fourth consecutive weekly rise and its longest weekly winning streak since April. For the month, the S&P was up 6.9%, its largest monthly increase since November 2020.

The Dow rose 0.4% for the week while the Nasdaq rose 2.7%, which is also four consecutive weekly gains. The Dow rose 5.8% in October, its best monthly performance since March, while the Nasdaq climbed 7.3%, the largest monthly percentage increase since November 2020.

Apple was up about 2.5% in Thursday’s session while Amazon was up 1.6%, helping to close the S&P 500 and Nasdaq at record highs.

With 279 companies in the S&P 500 reporting results as of Friday morning, 82.1% have exceeded earnings expectations according to Refinitiv data. The current year-over-year earnings growth rate for the third quarter is 39.2%.

Market participants were aware of the ability of companies to maneuver through labor shortages, rising price pressures, and supply chain congestion, and a solid earnings season has helped investors overlook a mixed macro picture with a Federal Reserve on the verge of becoming soon scaling back its massive bond purchases.

The next monetary policy announcement from the central bank is on November 3rd.

Data showed that US consumer spending rose solidly in September as inflationary pressures mount.

The data showed that the jury has not yet decided whether the Fed’s “passing” view on inflation will be correct.

AbbVie Inc (NYSE 🙂 rose 4.56% as the U.S. drugmaker raised its adjusted earnings forecast for 2021 for the third time this year.

Starbucks Corporation (NASDAQ 🙂 fell 6.30% after the coffee chain announced that fiscal 2022 operating margin will be below its long-term target due to inflation and investment.

Declining issues outweighed increasing issues on the NYSE by a ratio of 1.14 to 1; on the Nasdaq favored a ratio of 1.02 to 1 advanced.

The S&P 500 posted 50 new 52-week highs and 4 new lows; the Nasdaq Composite posted 127 new highs and 78 new lows.

The volume on the US exchanges was 11.12 billion shares, compared to the average of 10.35 billion for the entire session for the last 20 trading days.

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