- IBM tumbles after missing quarterly revenue estimates
- Tesla reverses course, trades higher after Q3 report
- Indexes: Dow down 0.31%, S&P off 0.05%, Nasdaq up 0.26%
Oct 21 (Reuters) – The Dow on Thursday eased from a record high hit in the previous session as IBM shares fell after its quarterly report, with the potential impact of supply chain disruptions and labor shortages on profits taking the center stage this earnings season.
“Stocks are climbing to new highs and anytime the market is trading at or near its all-time high, it is not unusual to see a little bit of more intraday volatility…and it should not concern investors,” said Tom Mantione, managing director, UBS Private Wealth Management in Stamford, Connecticut.
Six of the 11 major S&P 500 sectors were trading lower, with energy stocks (.SPNY) falling the most.
Investors are keeping a close eye on growth outlook from companies facing rising costs, labor shortages and supply chain constraints, with analysts expecting profit of S&P 500 companies to rise 33.7% from a year earlier, according to Refinitiv data.
“They (supply chain constraints) definitely are a concern. Things like semiconductor chips in particular have held back the economy to some degree and have put some upward pressure on inflation,” said Jon Adams, senior investment strategist for BMO Global Asset Management.
Data showed the number of Americans filing new claims for unemployment benefits dropped to a 19-month low last week, pointing to a tightening labor market, though a shortage of workers could keep the pace of hiring moderate in October. read more
At 12:00 p.m. ET, the Dow Jones Industrial Average (.DJI) was down 111.47 points, or 0.31%, at 35,497.87, the S&P 500 (.SPX) was down 2.15 points, or 0.05%, at 4,534.04 and the Nasdaq Composite (.IXIC) was up 38.84 points, or 0.26%, at 15,160.52.
American Airlines (AAL.O) rose 1.2% after posting a smaller-than-expected quarterly loss, while Southwest Airlines Co (LUV.N) fell 1.5% after it said it expected current quarter profits to remain elusive.
HP Inc (HPQ.N) gained 5.9% as brokerages raised their price targets on the stock after the personal computer and printer maker forecast upbeat fiscal 2022 adjusted profit and raised its annual dividend.
Declining issues outnumbered advancers for a 1.60-to-1 ratio on the NYSE and for a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded 48 new 52-week highs and no new low, while the Nasdaq recorded 84 new highs and 24 new lows.
Our Standards: The Thomson Reuters Trust Principles.
- Tech sector pushes the S&P 500 to slight gain
- S&P 500, Nasdaq hit record on IBM, waning China virus fears
- TSMC forecasts up to 45% rise in Q1 revenue, bets on robust 5G demand
- Gladiator games: Experts harness tech to reveal Roman city's secrets
- ASX hits record high for fourth straight day; Wall Street climbs to new peak
- US STOCKS-S&P 500 crosses 3,300 on Morgan Stanley earnings, tech rally
- U.S. stocks hit a new high as S&P 500 recovers all of its 2018 losses
- GLOBAL MARKETS-Stocks hit new peaks on trade deal as oil slips on demand worries
- Stocks hit new peaks on trade deal as oil slips on demand worries
- ASX to hit record 7,000 points; Wall St wavers over US-China trade deal
- S&P 500 crosses 3,300 on Morgan Stanley earnings, tech rally
- GLOBAL MARKETS-Dollar gains, stocks scale fresh highs on data, trade deal
- RIL gains 2%, TCS and HCL Tech flat ahead of Q3 results
- iPhones and Macs rise, iPads and iPods drop in Apple’s Q3 2014 [Updated]
- Due to weak oversight, we don’t really know how tech companies are using facial recognition data
- Apple supplier TSMC predicts sharp rise in Q1 revenue, bets big on 5G demand
- Taiwan's TSMC forecasts sharp rise in first quarter revenue, bets on robust 5G demand
- Sea level ‘doomsday’ simulator reveals if YOUR home would be wiped out by rising oceans
- Money laundering: This startup thinks its tech can prevent another banking scandal
- Samsung drifts away from Android; will Motorola rise to replace it?
Dow hit by IBM results, Nasdaq rises on gains in Big Tech have 752 words, post on www.reuters.com at October 21, 2021. This is cached page on Business News. If you want remove this page, please contact us.