Stocks Eke Out Small Gains, Still Headed For Weekly Loss

FILE - Pedestrians pass the New York Stock Exchange as it operates during normal business hours in the Financial District, Wednesday, Oct. 13, 2021, in the Manhattan borough of New York. Stocks are opening mostly higher on Wall Street Thursday, Nov. 11, a day after a surge in inflation knocked the market lower. Big tech companies had some of the strongest gains in the early going. (AP Photo/John Minchillo, FILE)

Stocks managed to close mostly higher on Wall Street Thursday, but the S&P 500 is still on track for its first weekly loss in six weeks. The benchmark index eked out a gain of under 0.1%, while gains in technology companies helped push the Nasdaq up 0.5%. The mixed showing came a day after a surge in inflation tripped up major indexes. Disney sank 7.1% in heavy trading after reporting a slowdown in subscriber gains at its streaming channel. Beyond Meat dropped 13.3% after reporting a much wider loss than analysts were expecting. Bond trading was closed for Veterans Day.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks edged higher in afternoon trading on Wall Street Thursday a day after a surge in inflation tripped up major indexes.

The S&P 500 rose 0.2% as of 2:51 p.m. Eastern. The Dow Jones Industrial Average fell 129 points, or 0.4%, to 35,949 largely due to a steep drop in Walt Disney. The Nasdaq rose 0.7%.

Smaller-company stocks outpaced the broader market in a sign that investors were feeling confident about economic growth. The Russell 2000 rose 0.9%.

Technology stocks made the strongest gains, led by chipmakers. Nvidia rose 3.2% and Qualcomm rose 3.1%.

Banks also gained ground. Citigroup rose 1.1%.

Coach and Kate Spade owner Tapestry jumped 8.9% after reporting strong fiscal first-quarter financial results.

Health care and industrial stocks fell. Medical technology maker Medtronic shed 2.6% and Honeywell shed 1.8%.

Walt Disney fell 6.9% after reporting a slowdown in subscriber gains at its streaming channel and weak fiscal fourth-quarter financial results.

Beyond Meat dropped 13.9% after reporting a much wider loss than analysts were expecting.

The latest round of corporate earnings has been winding down. Weeks of solid financial reports helped the broader market rise and reach a series of records. Inflation concerns have been rattling investors throughout the week, however. The benchmark S&P 500 is on track for its first weekly loss after five straight weekly gains.

“It’s a pretty simple rule to be long during earnings and cautious outside of earnings,” said Jay Hatfield, CEO of Infrastructure Capital Advisors, “Earnings ends and then the stock market is a victim of other data, which tends to be bad.”

Every major index slipped on Wednesday following a hotter-than-expected inflation report from the Labor Department that revealed a surge in consumer prices surged in October. That report came on the heels of data on Tuesday that showed inflation at the wholesale level also surged in October.

The inflation concerns pushed bond yields broadly higher on Wednesday, though the bond market was closed for Veterans Day on Thursday. The yield on the 10-year Treasury stood at 1.55% as of late Wednesday.

Companies have been warning that they are being squeezed by higher raw materials costs and supply chain problems. Many have been able to pass off those higher costs to consumers, but that has raised concerns about higher prices eventually prompting a pullback in consumer spending.

The latest report on consumer prices revealed that inflation is hitting essential items such as food, rent, autos and heating oil particularly hard. Analysts worry that consumers could cut spending on discretionary items to focus on essentials, which could then crimp the broader economic recovery.

Concerns about rising inflation are also raising expectations that the Federal Reserve will have to raise short-term interest rates more quickly off their record low. The central bank has already begun to pare back on the bond purchases it makes every month to keep longer-term rates low.

“The weird thing is what’s hurting the economy is also supporting the stock market,” Hatfield said, referring to the Fed’s stimulus measures.

By DAMIAN J. TROISE - Nov 11. 2021 - 4:10 PM ET




News Sources

  • ABC
  • Access Hollywood
  • Associated Press
  • BBC
  • Bloomberg
  • Boston Globe
  • C-SPAN
  • CBS
  • Chicago Sun-Times
  • Christian Science Monitor
  • Center for Public Integrity
  • CNN
  • Congressional Quarterly
  • Democracy Now!
  • Digg
  • E! Online
  • Entertainment Weekly
  • Financial Times
  • Forbes
  • Foreign Policy
  • Fortune
  • Front Street Magazine

  • U.S. News, World News
  • Business, Politics
  • Entertainment, Sports
  • Art, Lifestyle
  • Videos And More
  • News Sources

  • Fox News
  • Google News
  • Guardian
  • Huffington Post
  • Independent
  • LA Weekly
  • Los Angeles Times
  • McClatchy
  • Mother Jones
  • National Journal
  • NBC New
  • New York Post
  • New York Times
  • Newsweek
  • Newsy
  • NPR
  • PBS NewsHour
  • People
  • Politico
  • Reuters
  • TPM
  • Washington Post
  • Thanks For Your Support!


    Copyright © 2021 Front Street. All Rights Reserved.

    Skip to toolbar