Stocks Mixed, but Post Third-Straight Weekly Gains…..
U.S. equities finished the final trading session of the week mixed, but managed to bring the winning streak of weekly gains to three, with both the S&P 500 and the Dow reaching new record high territory. Earnings season remained in full force, with Dow members American Express and Intel both beating earnings and revenue forecasts, while fellow Dow component Honeywell posted mixed results. Meanwhile, Chipotle reported strong quarterly figures, but shares of Snap plunged after it missed the Street’s revenue forecasts. The economic calendar was light today, with October reads on preliminary manufacturing and services activity the lone releases, showing the continued impacts of supply chain bottlenecks, inflationary pressures, and labor shortages that have been persistent themes of late. Treasuries were mixed as the yield curve has flattened slightly and the U.S. dollar ticked lower, while crude oil prices and gold gained ground. Europe finished mostly higher amid some upbeat economic data, while markets in Asia were mixed.
The Dow Jones Industrial Average gained 74 points (0.2%) to 35,677, while the S&P 500 Index declined 5 points (0.1%) to 4,545, and the Nasdaq Composite lost 125 points (0.8%) to 15,090. In moderate volume, 763 million shares were traded on the NYSE and 5.6 billion shares changed hands on the Nasdaq. WTI crude oil rose $1.26 to $83.76 per barrel. Elsewhere, the gold spot price advanced $13.00 to $1,794.90 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—ticked 0.2% lower to 93.62. Markets were higher for a third consecutive week, as the DJIA gained 1.1%, the S&P 500 increased 1.7%, and the Nasdaq Composite advanced 1.3%.
Manufacturing activity slows but services jumps…..
The preliminary Markit U.S. Manufacturing PMI Index for October declined to 59.2 from September’s unrevised 60.7 figure but remained solidly in expansion territory as denoted by a reading above 50. Estimates called for the index to dip to 60.5. The preliminary Markit U.S. Services PMI Index showed growth (above 50) for the key U.S. sector accelerated more than expected, rising to 58.2 from August’s 54.9 figure and compared to forecasts of a rise to 55.2.
When looking at the composite index of output from both sectors, Markit said, “Stronger sales placed further pressure on business capacity during October. The level of outstanding business rose at a series record pace, with respondents linking the latest rise with supply issues and a lack of staff.” Markit also mentioned that companies stepped up their hiring efforts in October as employment increased at the fastest pace since June.
Treasuries were mixed, as the yield on the 2-year note was up 3 basis points (bps) at 0.47%, while the yield on the 10-year note was down 3 bps at 1.65%, and the 30-year bond rate was 4 bps lower at 2.09%.
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