The S&P 500 and Nasdaq Composite climbed today despite weak durable goods orders. The Dow ended the day in a slight decline.
Durable goods dropped 1.1%, more than consensus estimates of negative 0.7% Not only did this mark the largest decline in four months, it also comes after the ISM manufacturing data last month that noted US manufacturing had fallen to its lowest level in ten years. The drop in durable goods may be reflective of slowing growth in manufacturing across the globe.
Despite weakness in the manufacturing sector, the labor market remains relatively strong as jobless claims fell in October by 6,000 giving us a figure of 212,000. This figure indicates that jobless claims are still within their 50-year lows.
Home sales came in strong at a 701,000 annual rate in August, above the 698,000 consensus. The three-month average in home sales over the last two months have been the strongest since the sub-prime crisis a decade ago.
The S&P 500 advanced 0.2% to 3,010.29; the Nasdaq climbed 0.8%, closing at 8,185.80; while the Dow slid 0.1% to 26,805.53. Shares of the Dow component, 3M, fell 4.1% as the company cut its full-year earnings forecast.
Among today’s winners was Microsoft, whose shares rose 2% after reporting its earnings per share of $1.38 which topped analyst estimates of $1.25, according to Refinitiv. To date, over 31% of the S&P 500 companies have reported. Nearly 80% of the companies have beat analyst estimates, according to research firm FactSet.
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