This was another record breaking session for the Dow Jones Industrial Average and S&P 500 Index as investors analyzed the latest corporate earnings reports.
On the positive side, the delivery company United parcel service (UPS, + 7.0%) surged after reporting higher-than-expected earnings and revenues for its third quarter. Industrial conglomerate General Electric (GE, + 2.0%) was another winner after earnings thanks to its upward revised profit forecast for the year.
And while a strong reading of consumer confidence in October kept major benchmarks in the green – with the Conference Board reporting the first month-over-month increase in its composite index (to 113, 8 vs. 109.8 in September) since June – negative reactions to loss of income from social media giants Facebook (FB, -3.9%) and defense contractor Lockheed Martin (LMT, -11.8%) knocked them out of their session highs.
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Yet the Dow closed 0.04% higher at 35,756 and the S&P 500 gained 0.2% to 4,574 – new records – while the Nasdaq Composite added 0.06% to 15,235.
Other stock market news today:
- Small cap Russel 2000 edged down 0.7% to end at 2,296.
- U.S. Crude Oil Futures rose 1.1% to close at $ 84.65 a barrel.
- Gold Futures slipped 0.7% to $ 1,793.40 an ounce.
- The CBOE Volatility Index (VIX) increased 4.9% to 15.98.
- Bitcoin prices fell 1.2% to $ 61,951.69. (Bitcoin trades 24 hours a day; the prices listed here are at 4 p.m. each trading day.)
- Hasbro (HAS) gained 3.2% after the toy maker reported higher-than-expected adjusted third-quarter profit of $ 1.96 per share on online revenue of $ 1.97 billion. The company’s entertainment division benefited from its “My Little Pony” and “Come From Away” productions, which helped cushion the blow of shipping delays caused by disruptions to the global supply chain. CFRA analyst Zachary Warring maintained a buy rating on HAS. “The company saw 76% sales growth in entertainment, with the division benefiting from the resumption of productions and deliveries and 32% sales growth in digital games as it sees continued momentum in the space. . We believe HAS will outperform as its entertainment and digital segments generate higher margins and sales, ”he wrote in a note.
- Google parent Alphabet (GOOGL) delivered a wide beat in the third quarter on the top and bottom lines. The company generated $ 65.1 billion in revenue to hit the highest estimate of $ 63.3 billion, and earned $ 27.99 per share, easily beating revenue expectations of $ 23.48 per share . This was a particularly strong quarter given that traffic acquisition costs of $ 11.5 billion were much higher than the $ 8.2 billion reported in the quarter last year. GOOGL shares, however, were down 2% at the start of after-hours trading.
Is the market ready for more gains?
Seasonality suggests that the stock market still has a lot of potential. The S&P 500 tends to hit its fourth quarter lows in late October before rebounding in the new year, said Ryan Detrick, chief market strategist for LPL Financial. In addition, the fourth quarter is historically the strongest quarter of the year.
And beyond seasonality, Detrick points to several signs of improving internals and market fundamentals, including the recent rebound in copper prices, broader indices hitting new highs, and declining COVID-19 cases. .
A confluence of such signals, notes Detrick, can “pave the way for a potentially bullish environment for stocks until the end of the year.” As such, the strategist believes that “tactical investors should tilt portfolios in favor of stocks over bonds over their respective targets.”
For those looking to take advantage of this bullish wave in the New Year, consider financials, which are hitting new highs after several months of stagnation. Another way to participate in the seasonal tailwinds is to use consumer discretionary stocks – which outperform the S&P 500 after trailing it for most of the summer – and could continue to do so during key buying season. Holidays. Take a look as we take a look at 13 of the best opportunities in the consumer discretionary industry.