S&P 500 and Dow Close at All-Time Highs…..

U.S. equities added on to a three-week winning streak to begin the new week, with both the S&P 500 and the Dow advancing to all-time highs. The Energy sector led the way amid the continued crunch, while the value-oriented Utilities and Financials sector were laggards with rates likely a drag on the latter. Earnings remain in focus again this week, as Restaurant Brands International beat the Street’s forecasts, but Kimberly-Clark fell short of estimates, while both companies noted a common theme among earnings releases this quarter—supply chain problems and higher costs. Meanwhile, there is likely some caution as investors are looking ahead to both a robust economic calendar and several tech heavyweights reporting their earnings this week. Today’s economic calendar was light as the Dallas Fed Manufacturing Index was surprisingly higher. Treasuries ticked higher as yields fell, particularly on the short end of the curve. The U.S. dollar was slightly higher, while crude oil was slightly lower, and gold advanced. Europe finished mixed in a somewhat subdued session, while Asia finished mostly higher.

The Dow Jones Industrial Average gained 64 points (0.2%) to 35,741, while the S&P 500 Index increased 22 points (0.5%) to 4,566, and the Nasdaq Composite gained 137 points (0.9%) to 15,227. In moderate volume, 806 million shares were traded on the NYSE and 5.6 billion shares changed hands on the Nasdaq. WTI crude oil was down $0.33 at $83.43 per barrel. Elsewhere, the gold spot price gained $11.40 to $1,807.70 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—rose 0.2% to 93.84.

The Dallas Fed Manufacturing Index moved further into expansion territory (a reading above zero) for October. The index jumped to 14.6 from 4.6 in September and compared to forecasts calling for a rise to 6.0.

Treasuries were higher, as the yield on the 2-year note was down 4 basis points (bps) at 0.43%, the yield on the 10-year note was down 2 bps at 1.63%, and the 30-year bond rate was unchanged at 2.09%.

©2021 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.

Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.