- October 28, 2021
- Posted by: udohzone
- Category: Publications
(Bloomberg) — U.S. stocks approached all-time highs as fresh signs that Corporate America is delivering on lofty earnings expectations propel major indexes toward the best month in a year. Treasuries continued to gyrate, with some portions of the yield curve inverting.
Health care and technology shares led the S&P 500 higher, while the Dow Jones Industrial Average and Nasdaq 100 also increased. The Treasury yield curve inverted between 20 and 30 years on Thursday for the first time since the U.S. government reintroduced a two-decade maturity in 2020.
“We have a market powered by strong earnings, generally good economic news and a calming down of the bond market, and so the path of least resistance is higher and equities remain the asset class of choice with low return potential on other asset classes,” said David Donabedian, chief investment officer of CIBC Private Wealth Management,
Investors are digesting earnings from some of America’s biggest companies. Industrial bellwether Caterpillar Inc. rose after an earnings beat. Ford Motor Co. soared after lifting forecasts and resuming dividends. EBay Inc. dropped after reporting disappointing results late Wednesday.
Excluding financial firms, companies in the S&P 500 that announced results have boosted net-profit margins by 40 basis points to 12.4% from the previous quarter, according to data compiled by Bank of America Corp. The improvement has spread across major industries, with all but energy and consumer staples posting better margins.
Earlier, a report showed that the U.S. economy expanded at an annual rate of 2% in the three months through September, lower than the 2.6% median estimate in a Bloomberg survey, as consumer spending slowed. The GDP price index also slowed from the last quarter, though it still rose more than analysts’ expectations. A separate report showed that weekly jobless claims fell to a pandemic low.
Source: https://finance.yahoo.com/news/asia-stocks-fall-bond-curves-215142474.html