Steady earnings leave indexes higher in short-term break week

Wall Street continued its recent streak on Thursday, ending a shortened holiday trading week with a major stock rally that propelled the S&P 500 index to all-time highs. The S&P 500 Index rose 0.6 percent, its third consecutive gain. The benchmark’s latest milestone marks its 68th record this year. It is now up 25.8% on the year with just five trading days left in 2021.

The Dow Jones Industrial Average rose 0.6% and the Nasdaq gained 0.8%. Russell 2000, a measure of small business stocks, rose 0.9%.
Stock indexes have recovered this week after posting weekly losses last week. An increase in coronavirus cases due to the omicron variant has weighed on Wall Street, adding to concerns about rising inflation and its impact on economic growth. Traders may have been encouraged by some preliminary research suggesting that omicrons, while spreading much more rapidly than the COVID19 delta variant, can cause less severe illness.

“Covid is spreading at an amazing rate, but the fact that this version seems less deadly gives people a lot of hope,” said J.J. Kinahan, chief strategist at TD Ameritrade said. “It gives people real confidence in the future as we head into 2022.”

S&P 500 rose 29.23 points to 4,725.79. The index has gained 2.3% for the week. His latest all-time high has eclipsed the level he reached on December 10. The Dow rose 196.67 points to 35,950.56, while the Nasdaq rose 131.48 points to 15,653.37. Russell 2000 has 19.67 points to 2,241.58. Bond yields increased. The yield on the 10-year Treasury note rose from 1.46% to 1.49% on Wednesday night.

Wall Street is trying to gauge how corporate profits in 2022 might be affected by inflation, global supply chain disruptions and the pandemic. In the short term, the outlook is clouded by the rapid spread of omicrons. Governments in Asia and Europe have tightened travel controls or pushed back plans to ease restrictions already in place.

Investors got good news on Thursday as US health regulators cleared Merck’s pill to treat COVID19. Regulators have previously paved the way for Pfizer’s disposal.
Traders also weigh in on economic data. US consumer prices rose 5.7% in November from a year earlier, the fastest pace in 39 years, the Commerce Department said, as soaring inflation faced the American holiday shopping season. . Companies have had to deal with supply chain problems and higher raw material costs, which, in turn, pass on to consumers.

Rising prices have raised concerns that consumer spending, which accounts for 70% of US economic activity, is slowing and hampering economic growth. The latest report showed spending rose 0.6%, far below October’s 1.4% increase. 4,444 Meanwhile, the Labor Department reported that the number of Americans claiming unemployment benefits Employment was flat last week, remaining at an all-time low reflecting the strong recovery in the labor market from the coronavirus recession last year.

About 80% of stocks in the benchmark S&P 500 index gained, with technology and industry accounting for a significant portion of the gain. Real estate and utility stocks lagged behind. 4,444 systems from Cisco, which makes routers and other computer hardware, up 1.2%. Chipmaker Micron Technology grew 4.5%. Retailers and other businesses that depend on consumer spending have gained a foothold. Tesla rallied 5.8% to post the biggest gain in the S&P 500. Target is up 1.5% and Domino’s Pizza is up 2.1%. European markets rose and Asian markets closed higher overnight. 4,444 US markets will be closed on Friday for Christmas.