US stocks build on records amid earnings avalanche

About 35 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.1 per cent at 35,801.58, and the broad-based S&P 500 was slightly positive at 4,576.67. — AFP pic
About 35 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.1 per cent at 35,801.58, and the broad-based S&P 500 was slightly positive at 4,576.67. — AFP pic

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WASHINGTON, Oct 27 — The S&P 500 and Dow added to their record closes in early US trading today, as traders digested a flood of new earnings releases from major companies.

Before markets opened, GM said its third-quarter profits sunk as did car sales, due to the global semiconductor crunch the automaker predicted would persist into 2022.

Boeing reported a quarterly loss in a setback to its recovery from recent stumbles, citing troubles with the 787 aircraft.

And government data showed durable goods orders fell in September for the first time in five months —  partly due to lower Boeing orders — though the drop was less than expected.

About 35 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.1 per cent at 35,801.58, and the broad-based S&P 500 was slightly positive at 4,576.67. Both indices ended at records yesterday.

The tech-rich Nasdaq Composite Index gained 0.2 per cent to 15,264.46.

“Eighty per cent of the companies are beating estimates. Even when you factor in supply chain issues and rising raw material costs, the results continue to be excellent,” said Gregori Volokhine of Meeschaert Financial Services.

“It shows that the markets absolutely do not need a bailout.”

Boeing was trading 0.3 per cent lower, while GM was down 4.3 per cent.

Google, which reported a big profit jump after markets closed yesterday, was up 2.3 per cent.

Volokhine said traders are now monitoring talks in Washington over President Joe Biden’s massive social spending bill, as the ruling Democratic party proposed new taxes to offset its cost amid concerns the programme could fuel inflation.

“In my view, the smaller the package, the more positive it will be for the market because right now the big fear is inflation,” Volokhine said. — AFP

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