Stocks Advance on Wall Street, Led by Big Tech Gains | national news


Stocks edged higher in afternoon trading on Wall Street Thursday a day after a surge in inflation stumbled major indexes.

The S&P 500 was up 0.1% at 1:29 p.m. EST. The Dow Jones Industrial Average fell 124 points, or 0.3%, to 35,956 largely due to a sharp drop in Walt Disney. The Nasdaq rose 0.7%.

Smaller company stocks outperformed the market as a whole, a sign that investors were confident about economic growth. The Russell 2000 rose 1%.

Tech stocks made the biggest gains, leading chipmakers. Nvidia rose 2.6% and Qualcomm 3.2%.

Banks have also gained ground. Citigroup rose 1%.

Tapestry, owner of the coach and Kate Spade, jumped 10% after posting strong financial results in the first quarter.

Values ​​in healthcare and industry have plummeted. Medtech maker Medtronic lost 2.5% and Honeywell lost 1.7%. Industries considered less risky, including utilities and manufacturers of household products, also fell.

Walt Disney fell 6.5% after reporting slowing subscriber gains on its streaming channel and weak financial results in the fourth quarter.

Beyond Meat fell 14.7% after reporting a much larger loss than analysts expected.

The latest round of corporate profits is drawing to a close. Weeks of strong financial reporting have helped the wider market rise and hit a series of records. Inflation fears rocked investors throughout the week, however.

“It’s a pretty straightforward rule to be long on profits and cautious outside profits,” said Jay Hatfield, CEO of Infrastructure Capital Advisors, “Profits end and the stock market falls victim to others. data, which tends to be bad. “

Every major index slipped on Wednesday following a warmer-than-expected inflation report from the Ministry of Labor which revealed a surge in consumer prices in October. The report follows data on Tuesday which showed wholesale inflation also rose in October.

Inflation concerns pushed bond yields significantly higher on Wednesday, although the bond market was closed for Veterans Day on Thursday. The 10-year Treasury yield stood at 1.55% on Wednesday night.

The companies warned they were being stifled by rising raw material costs and supply chain issues. Many were able to pass these higher costs on to consumers, but this raised concerns about rising prices, which ultimately led to lower consumer spending.

The latest consumer price report found that inflation is hitting essentials such as food, rent, cars and fuel oil particularly hard. Analysts fear that consumers will cut spending on discretionary items to focus on the essentials, which could then hamper the broader economic recovery.

Concerns about rising inflation also raise hopes that the Federal Reserve will need to raise short-term interest rates more quickly from their historic lows. The central bank has already started cutting back on bond purchases it makes each month to keep long-term rates low.

“The odd thing is that what hurts the economy is also supporting the stock market,” Hatfield said, referring to the Fed’s stimulus measures.

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