US stocks post weekly gains amid profits and economic data

NEW YORK, Oct. 30 (Xinhua) – US stocks rose during the week as Wall Street assessed a series of earnings reports and economic data.

For the week ending Friday, the Dow Jones gained 0.4%, the S&P 500 rose 1.3% and the Nasdaq Composite rose 2.7%. For October, the Dow Jones climbed 5.8%, while the S&P 500 and Nasdaq jumped 6.9% and 7.3% respectively.

The S&P US Listed China 50 Index, which is designed to track the performance of the 50 largest Chinese companies listed on the US stock exchanges by total market capitalization, recorded a weekly decline of 6.2%.

The above market moves came as the earnings season continued to deliver this week, including results from several top companies. The profits of the tech heavyweights presented a mixed picture.

Apple released its fiscal fourth quarter results after the closing bell Thursday, missing analysts’ earnings expectations, and its executives have warned of lingering supply chain issues.

Also on Thursday, Amazon released its third quarter results, missing in the top and bottom lines.

US social media giant Facebook reported mixed results in the third quarter, which saw profits exceed expectations and revenues miss estimates.

Microsoft announced first quarter tax results that were better than analysts’ estimates.

Google’s parent company Alphabet reported third-quarter results after Tuesday’s close that exceeded Wall Street expectations as the company saw a resurgence in its search business with a resumption in travel business.

Regarding other profits, aircraft maker Boeing released third quarter results that missed analysts’ forecasts. Energy giants Exxon Mobil and Chevron made profits above expectations. US financial services firm Robinhood reported a huge third quarter shortfall.

About half of the S&P 500 has released quarterly results and by the end of next week 90% of the index will have released results, according to figures from The Earnings Scout, a macroeconomic research firm specializing in trends. corporate profits.

The start of the third quarter earnings season confirmed that the pace of earnings growth has slowed down, which “was to be expected given the exceptionally strong second quarter, as well as headwinds due to disruption in the business chain. ‘supply, rising energy costs and a new wave of COVID-19 infections, “UBS analysts said in a note Monday, adding that there were” encouraging signs in detail results that support our positive position on equities. “

“It looks like earnings per share (EPS) growth will exceed our estimate of 30% for the quarter. This week, nearly 50% of the S&P 500 market cap will be released. We maintain our 2021 S&P 500 EPS estimate of 45% growth and our estimate of 10% growth, ”said Mark Haefele, chief investment officer at UBS Global Wealth Management.

Economically, the United States’ personal consumption expenditure (PCE) rose 0.6% in September, the Commerce Department reported on Friday.

The 12-month increase in the PCE index, the measure of inflation closely watched by the Federal Reserve, rose to 4.4% in September from 4.2% the month before, well above the target rate annual rate of 2% from the Fed.

The US Department of Commerce reported Thursday that US GDP grew only 2 percent in the third quarter, compared to 6.7 percent growth in the second quarter.

The U.S. Department of Labor said initial U.S. jobless claims, a rough way to measure layoffs, stood at 281,000 for the week ending Oct. 23, a drop of 10,000 from revised level of 291,000 the previous week. Economists polled by the Wall Street Journal had predicted that new claims would drop to 289,000 seasonally adjusted.

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