June 4, 2023

DS Duke

Global Business In World

NASDAQ, S&P Close at Record Highs

2 min read
The stock market reached record levels on Thursday as strong earnings from major companies bolstered...

The stock market reached record levels on Thursday as strong earnings from major companies bolstered investor confidence.

The Dow Jones Industrials jumped 239.79 points to 35,730.48

The S&P 500 regained 44.74 points to 4,596.42

The NASDAQ Composite hiked 212.28 points, or 1.4{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, to 15.448.12. Both S&P and NASDAQ surpassed previous record highs.

Ford was a standout, as its shares jumped 8.7{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} for their best day of the year after reporting blockbuster earnings while also raising guidance. The automaker said increased availability of semiconductors during the quarter allowed it to ramp up production. Merck and Caterpillar also moved higher following earnings beats.

Shares of Apple picked up 1.6{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, while Amazon seized 2.5{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} both to boost the NASDAQ. Shares of Tesla climbed 3.8{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, continuing a strong stretch after last week’s earnings beat.

The move for stocks came despite a disappointing economic report on Thursday. Gross Domestic Product growth for the third-quarter came in at 2.0{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}, below the 2.8{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} expected. The reading marks a slowdown from 6.7{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} growth in the second quarter.

However, the third-quarter report captured much of the delta wave of COVID-19 that rolled through the U.S. but has since receded, leading some to believe it was a short-term slowdown.

On a more positive note for the economy, weekly initial jobless claims came in at 281,000. Economists surveyed by Dow Jones were expecting 289,000 claims.

Wall Street was also monitoring events in Washington, where Democrats and President Joe Biden appear to have reached a deal on a $1.75-trillion social spending bill.

Prices for 10-year Treasurys swooned, raising yields to 1.57{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389} from Wednesday’s 1.54{1cd7dfeabecd92a256507009bf608c3bde4df96f09e82f3bc2c9d67cc3d41389}. Treasury prices and yields move in opposite directions.

Oil prices regained 53 cents to $83.19 U.S. a barrel.

Gold prices recovered $1.30 to $1,800.10 U.S. an ounce.

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