S&P, Nasdaq Push On To Fresh Closing Highs

The Dow Jones Industrial Average posted a slim loss, ending its streak of record closes at four. Declines in shares of banks JPMorgan Chase and Goldman Sachs weighed on the blue-chip index.

Financials dropped 1.3 percent , most among S&P 500 sectors, as US Treasury yields fell, with the market unwinding expectations of quicker Fed rate hikes a day after the central bank signaled it was in no hurry to do so.

"The growth side of the market is seeing more positive results today as they are benefiting from the falling yields that are developing,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.

“The market had been positioning for higher yields in general given the Fed announcement of tapering. As we walked in today, there has been a reversal in that.”

The Dow Jones Industrial Average fell 0.1 percent, to 36,124, the S&P 500 gained 0.4 percent, to 4,680, and the Nasdaq Composite added 0.8 percent to 15,940.

Qualcomm shares jumped 12.7 percent as the company forecast better-than-expected profits and revenue for its current quarter on soaring demand for chips used in phones, cars and other internet-connected devices.

Better-than-expected third-quarter earnings have helped lift sentiment for equities. With about 420 companies having reported, S&P 500 earnings are expected to have climbed 41.2 percent in the third quarter from a year earlier, according to Refinitiv IBES.

“The corporate earnings story remains quite bright,” said Craig Fehr, investment strategist at Edward Jones.

“The market is rewarding companies that are beating and upping their outlook, and the market is punishing companies that are missing their estimates in the quarter and more importantly, perhaps, signaling a more sour outlook.”

Moderna shares tumbled about 18 percent as the company slashed the 2021 sales forecast for its Covid-19 vaccine by as much as US$5 billion, grappling to fill vials and distribute them to meet unprecedented world demand. Moderna shares weighed on the S&P 500 healthcare sector, which fell 0.8 percent .

Data showed the number of Americans filing new claims for unemployment benefits fell to the lowest level in nearly 20 months last week, suggesting the economy was regaining momentum. Investors will get a critical view of the economy with the monthly jobs report on Friday. (Reuters)