Stocks at Wall Street went high on Wednesday on the back of solid earnings from health care companies and this rally pushed the benchmark S&P 500 to the brink of another record high.
The market has been gaining ground it lost after weeks of concerns about rising inflation and lackluster economic data. But investor focus has now shifted to the latest round of corporate earnings.
The S&P 500 rose 16.56 points, or 0.4%, to 4,536.19. It’s the sixth straight gain for the benchmark index and puts it less than a point from the all-time high it set on September 2.
The Dow Jones Industrial Average rose 152.03 points, or 0.4%, to 35,609.34. The Nasdaq fell 7.41 points, or less than 0.1%, to 15,121.68.
Wall Street cheered solid earnings from a variety of health care companies. Abbott Laboratories, which makes infant formula, medical devices, and drugs, rose 3.3% after handily beating analysts’ third-quarter profit forecasts. Health insurer Anthem rose 7.7% after also reporting strong financial results. Technology stocks lagged the broader market.
Bond yields rose. The yield on the 10-year Treasury rose to 1.65% from 1.63%.
Netflix fell 2.2% after forecasting earnings for its current quarter that were below analysts’ estimates.
PayPal fell 4.9% following reports that it is considering buying digital pinboard and shopping tool Pinterest, which jumped 12.8%.
The price of Bitcoin rose above $66,000 for the first time. The gains came a day after the first exchange-traded fund linked to Bitcoin futures attracted huge interest from investors looking to get into the surging field of cryptocurrencies.
Investors are busy reviewing the latest report cards from companies as they try to get a clearer understanding of how rising inflation and the lingering threat from COVID-19 will affect the economy.
A key concern remains supply chain disruptions and rising materials costs cutting into profits for many companies. Higher costs for companies could mean higher prices for consumers, which could threaten spending that is supporting the recovery.
Oilfield services company Baker Hughes fell 5.7% after reporting weak third-quarter financial results, partly because of supply chain problems and higher costs. Brinker International, which operates Chili’s Grill & Bar, fell 9.7% after its fiscal first-quarter profit fell far short of analysts’ forecasts as it faces higher commodity and labor costs.
Rising inflation has also put a sharper focus on the Federal Reserve and its plans to start trimming bond purchases that have helped keep interest rates low. The central bank maintained through most of the year that inflation would likely be temporary and tied to the economic recovery, but it has grown more concerned about rising inflation persisting.
Railroad operator CSX gained ground in after-hours trading after reporting solid financial results, while Tesla slipped after reporting its results.
There are still several large companies on deck to release their earnings this week. American Airlines, Southwest Airlines, and Union Pacific will report on Thursday.
(With AP inputs)