NEW YORK, October 28 – Wall Street stocks resumed their ascent early in the day after a mostly strong earnings stream from Merck, Caterpillar and others as investors ignored a lackluster US growth report.
Ford shares jumped 12.6 percent while Merck gained 4.2 percent following the latest round of earnings in a week full of results. Apple and Amazon report later today.
These optimistic reports overshadowed data showing the U.S. economy grew only 2% in the third quarter, down from the 6.7% annual rate in the previous quarter as the resurgence of Covid-19 infections slowed down consumer activity.
But a note from Schwab described growth data in the United States as “looking back,” adding that it was offset by “more timely” unemployment claims data that improved.
After about 20 minutes of trading, the Dow Jones Industrial Average rose 0.5% to 35,670.24.
The general S&P 500 index gained 0.6% to 4,580.02, while the technology-rich Nasdaq composite index also climbed 0.6% to 15,331.33.
Markets are monitoring ongoing talks in Washington, where Congressional Democrats are struggling to reach agreement on President Joe Biden’s infrastructure and social spending legislation. – AFP