The three stock indexes hit a record high this month, the highest performance in the whole year
U.S. stocks hit a record high again, and Wall Street, despite the disappointing performance of large stocks, out of its best single-month performance this year.
The Stamp 500 Index rose 8.96 points, or 0.19%, to 4,605.38. The Dow Jones Industrial Average rose 89.08 points, or 0.25%, to 35,819.56 points. The Nasdaq Composite Index rose 50.27 points, or 0.33%, to 15,498.39 points. The three major stock indexes have all set record highs, and the historical and Nasdaq indexes have experienced their best gains this month since November 2020.
Amazon fell 2.15%, and the third-quarter profit and revenue of the e- commerce giant were seriously lower than expected. The company also released disappointing financial forecasts for key holidays.
Due to more-than-expected supply constraints for iPhone, iPad and Mac, Apple’s last quarter revenue was lower than expected, and its stock price fell 1.81%. This is the first time Apple’s revenue has fallen short of Wall Street expectations since May 2017.
Microsoft rose 2.24%, surpassing Apple to become the world’s largest listed company by market capitalization.
Even though the performance of large technology stocks was disappointing, the stock market still hit a record high and made steady profits amidst global supply chain concerns. About half of the stocks in the history index have announced their results for the previous quarter, and more than 80% of them have exceeded the expectations of Wall Street analysts. The overall profit is expected to increase by 38.6% year-on-year.
Edward Jones investment strategist Angelo Kourkafas said: “As of now, I think it’s fair to say that companies have successfully dealt with these negatives and of course benefited from strong demand.” “But it’s undeniable that these The input cost pressure will be reflected in lower revenue or possible lower profit margins.”
He said, “But so far, about half of the historical companies have issued financial reports. The preliminary assessment is due to strong demand and pricing power, and profitability is still quite resilient.”
Profits exceeded expectations, and energy giants Exxon Mobil and Chevron rose. Due to lower-than-expected revenue from China, Starbucks shares fell.
All three major average stock indexes rose for 4 consecutive weeks. The Nasdaq rose more than 7% this month, the historical index rose 6.9%, and the Dow rose 5.8%, its best performance since March.
On the 28th, President Biden announced a 1.75 trillion yuan social expenditure agreement framework, which is expected to make it easier to pass the currently stagnant infrastructure expenditure bill on Capitol Hill. Compared with the previous version of the proposal, expenditures and taxes have been reduced.
Yung-Yu Ma, chief investment strategist at BMO Wealth Management, said that the result of the agreement seems to be the “sweet spot” and should give investors more optimism. “Its taxation part seems likely to be lower than initially expected. . Therefore, especially the burden of corporate tax will be lower than market concerns and expectations.”
Treasury Secretary Yellen said that she hopes that the government’s infrastructure design will be approved as soon as possible, and that she does not believe it will exacerbate the inflation problem that has been emerging in the United States.
She said: “This will increase the momentum of economic growth and supply, which tends to push inflation lower rather than higher.”