US STOCKS-Wall Street hits record but Facebook weighs
Facebook Inc was the biggest drag on the S&P 500 and Nasdaq, after the company warned that Apple Inc's new privacy changes would weigh on its digital business. "Facebook has other issues, certainly the earnings report wasn't as stellar," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
- United States
U.S. stock indexes closed modestly higher on Tuesday, with the Dow Industrials and S&P 500 hitting fresh records, and gains were subdued as Facebook shares fell in the wake of its quarterly earnings. Facebook Inc was the biggest drag on the S&P 500 and Nasdaq after the company warned that Apple Inc's new privacy changes would weigh on its digital business.
"Facebook has other issues, certainly the earnings report wasn't as stellar," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida. "Then pile on the issues with the whistleblower, what they knew, what they didn't know, how they set themselves up to benefit themselves even at the risk of kids and people that use the platform. That is going to kind of hangover it."
However, the benchmark S&P index scored a new high, lifted by names with big market capitalizations. Nvidia Corp gained to close at a record high, while Amazon.com Inc and Apple also rose. Support also came from an advance in United Parcel Service Inc and a rise in General Electric Co on the heels of their quarterly results.
According to preliminary data, the S&P 500 gained 7.76 points, or 0.17%, to end at 4,574.13 points, while the Nasdaq Composite gained 9.01 points, or 0.06%, to 15,235.72. The Dow Jones Industrial Average rose 13.03 points, or 0.04%, to 35,754.18. Earnings at S&P 500 companies are expected to grow 35.6% year-on-year in the third quarter, with market participants gauging how companies are navigating supply-chain bottlenecks, labor shortages and inflationary pressures.
"(The market) is getting tired. They ran them up ahead of earnings because everyone is expecting them to be good and robust, and they are ... but the market feels tired to me now way up here," said Polcari. While nearly all 11 S&P sectors rose on the session, defensive plays such as utilities and real estate were among the best performers, indicating some caution in the market.
Microsoft Corp, Google parent Alphabet Inc and Twitter Inc are among the notable names scheduled to report earnings after the closing bell. Data showed U.S. consumer confidence unexpectedly rebounded in October as concerns about high inflation were offset by improving labor market prospects. A Commerce Department report showed sales of new single-family homes surged 14.0% in September.
Ross Mayfield, investment strategist at Baird in Louisville, Kentucky, said with indexes at or near record levels, a run of good economic data could increase investor concerns the Federal Reserve may pull its timeline for a rate hike forward. The central bank's next policy announcement is expected on Nov. 3 after a two-day meeting.
Shares of Hasbro Inc climbed after the toy maker posted an upbeat third-quarter profit even as it warned of a hit to holiday sales from supply chain issues.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)