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Oct. 22, 2021, 4:42 p.m. EDT

Dow ends at all-time high, U.S. stocks book weekly gains despite tech under pressure

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By Christine Idzelis and Mark DeCambre

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See: JPMorgan portfolio manager adds S&P 500 exposure. Here’s why he’s bullish

A largely upbeat earnings reporting season has pushed the indexes up this week, though worries over inflation, the continuing COVID-19 pandemic, and troubles for China’s economy remain a nag. So far for the third quarter earnings season, 84% of companies are reporting EPS above estimates, according to Refinitiv. Profits are on pace in the quarter to increase 33.7%, according to Refinitiv.

“Clearly the economy lost momentum in the third quarter,” but the market is coming around to the view that “economic activity is not slumping,” Mark Luschini, chief investment strategist of Janney Montgomery Scott, told MarketWatch Friday.

In economic reports , IHS Markit’s survey of senior business executives in service-oriented companies rebounded to a three-month high of 58.2 from 54.9 in September. “That’s a pretty good jump in the services sector,” said Kleintop, a sign of “improving confidence” in the economic reopening as restaurants see more activity.

A similar survey of manufacturers slipped to 59.2 from 60.7. Any reading over 50 signals improving conditions.

Another factor that may be offering some relief to bulls is President Joe Biden saying at CNN town hall meeting Thursday evening that he probably doesn’t have the votes to boost corporate taxes . He also said he may alter or eliminate the filibuster to protect voting rights, and would consider using the National Guard to unclog the supply chains.

Which companies were in focus?

  • Beyond Meat Inc. shares  BYND  slid 11.8% Friday, after the plant-based food company issued a revenue warning for the third quarter, citing a range of issues including the highly transmissible delta variant of the coronavirus.

  • Seagate Technology Holdings PLC   STX  delivered better-than-expected earnings Friday morning and issued a forecast for the current period that exceeded analyst expectations at the midpoint. Shares climbed about 6.1%.

  • 23andMe Holding Co.   ME said Friday it agreed to pay $400 million for Lemonaid Health Inc., the on-demand platform for accessing medical care and pharmacy services, in a bid to add telemedicine and prescription drug delivery services. Shares of 23andMe rose 5.2%.

  • Shares of Schlumberger slid 1.1%, after the oil services company reported a third-quarter profit that matched expectations but revenue rose missed, but provided an upbeat outlook oil and gas demand.

  • Shares of Honeywell International Inc.   HON slumped about 3.2%, after the aerospace and building materials company reported third-quarter profit that topped expectations but revenue that came up short, citing “tough challenges” in the supply chain. 

How did other assets fare?

  • The yield on the 10-year Treasury note  TMUBMUSD10Y fell 2 basis points to 1.654% though it’s still up 8 basis points for the week. Yields and debt prices move in opposite directions.

  • The ICE U.S. Dollar Index  DXY , a measure of the currency against a basket of six major rivals, fell about 0.2%.

  • Oil futures ended higher , with the U.S. benchmark  CL00  rising 1.5% to settle at $83.76 a barrel. Gold futures /zigman2/quotes/210034565/delayed GC00 -0.15% rose $14.40, or 0.8%, to settle at $1,796.30 an ounce. For the week, gold was up 1.6% and notched a fourth weekly gain in five weeks.

  • The Stoxx Europe 600  SXXP closed 0.5% higher Friday for a weekly gain of 0.5%. London’s FTSE 100  UKX added 0.2%, but posted a weekly decline of 0.4%.

  • The Shanghai Composite  SHCOMP  ended 0.3% lower, but logged a weekly rise of 0.3%, while the Hang Seng Index  HSI rose 0.4% in Hong Kong for a weekly advance of 3.1%, and Japan’s Nikkei 225  NIK picked up 0.3%, helping cut a weekly loss to 0.9%.

–Barbara Kollmeyer contributed to this report.

/zigman2/quotes/210034565/delayed
US : U.S.: Nymex
$ 1,792.30
-2.70 -0.15%
Volume: 211,839
Jan. 28, 2022 4:59p
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