S&P 500 sets seventh straight all-time high on Wall Street

Nov 5, 2021, 12:01 AM | Updated: Nov 6, 2021, 6:46 am

NEW YORK (AP) — U.S. stocks pushed further into record heights on Friday following an encouraging report on hiring across the country, though trading was shaky as the bond market was hit with another day of sharp swings.

The S&P 500 rose 17.47, or 0.4%, to 4,697.53 and clinched an all-time high for the seventh straight day. The Dow Jones Industrial Average gained 203.72, or 0.6%, to 36,327.95, and the Nasdaq composite added 31.28, or 0.2%, to 15,971.59.

Trading was scattershot, though, and after climbing to an early gain of 0.8%, the S&P 500 at one point gave up virtually all of it. Stocks retrenched in the middle of the day as Treasury yields surprisingly slumped. A measure of nervousness in the stock market also made a U-turn higher around the same time.

The 10-year yield, which tends to move with expectations for the economy and inflation, dropped to 1.45% and is near its lowest level since September. It was at 1.58% just two days earlier. Analysts had varying explanations for that and other sharp moves in the bond market, which some called counterintuitive.

The Dow and Nasdaq nevertheless still joined the S&P 500 in setting all-time highs. The smaller stocks in the Russell 2000 performed even better, jumping 1.4%

An encouraging report from Pfizer helped to lift the market, particularly companies that most need daily life to return to normal from the pandemic. Pfizer rose 10.9% after it said its experimental pill sharply cut rates of hospitalization and death for COVID-19 patients. Airlines, casinos, cruise lines and live-event companies had similar jumps.

The headline report of the day was the one from the Labor Department that showed employers hired a net 531,000 workers in October. That was more than 100,000 above economists’ expectations. The gains were widespread across industries, and the government also revised higher the numbers for job growth in earlier months.

One potential worry spot for markets was a big jump in workers’ wages, up 4.9% from a year earlier, which can feed into concerns about inflation. But the numbers were relatively in line with economists’ expectations.

“It was one of those Goldilocks reports,” said Nate Thooft, head of global asset allocation at Manulife Investment Management. Besides showing stronger-than-expected hiring, “the simple reality was it wasn’t showing any overheating either.”

That’s why it was surprising that the 10-year Treasury yield fell so sharply to 1.44% from 1.52% late Thursday.

One possible reason was that investors see more people heading back to work as helping to clear the supply-chain bottlenecks that have hit the economy and driven up inflation, said Brian Jacobsen, senior investment strategist at Allspring Global Investments. That could lead to lowered expectations for inflation, which would add downward pressure on Treasury yields.

“The more people we get back to fill open positions will help keep that shortage pressure at bay a little bit,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.

But the degree of moves in the bond market still took market watchers by surprise.

“Some of these moves look extreme to me,” Allspring Global Investment’s Jacobsen acknowledged, citing a sharp drop for the 30-year Treasury yield to 1.88% from 1.96%. “I don’t think we can justify where yields are. It leads me to believe that this is some rather rapid repositioning by traders in the market and not necessarily a change in the trend.”

A day earlier, bond markets around the world shook after the Bank of England decided not to raise interest rates. Many investors had thought it was nearly a sure thing, and the inaction sent yields sliding.

For stocks, the trend has been solidly upward recently as a parade of companies has reported stronger profit for the summer than analysts expected. More than four out of five companies in the S&P 500 have topped forecasts, with roughly 90% of reports in hand, according to FactSet. Companies in the index appear on track to report 39% growth in their quarterly earnings per share over year-ago levels, which would be the third-fastest since 2010.

Online travel company Expedia jumped 15.6% and home-sharing company Airbnb rose 13% after they each reported stronger profits than expected.

On the losing end was exercise equipment maker Peloton Interactive. It plunged 35.3% after turning in profit and revenue that fell short of Wall Street’s expectations.

Health care stocks were also lagging the market. Moderna slumped 16.6% as it continued to fall after cutting its forecast on Thursday for vaccine deliveries in 2021.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Wisconsin Assembly Speaker Robin Vos talks to the media after Gov. Tony Evers addressed a jo...
Associated Press

Post-Roe differences surface in GOP over new abortion rules

MADISON, Wis. (AP) — When the U.S. Supreme Court repealed in June a woman’s constitutional right to an abortion, Wisconsin’s 1849 law that bans the procedure except when a mother’s life is at risk became newly relevant. Republicans in the Legislature blocked an attempt by Democratic Gov. Tony Evers to overturn the law. Yet there’s […]
22 hours ago
A cow crosses the Jordan River near Kibbutz Karkom in northern Israel on Saturday, July 30, 2022. S...
Associated Press

Mideast’s Jordan River: Rich in holiness, poor in water

ALONG THE JORDAN RIVER (AP) — Kristen Burckhartt felt overwhelmed. She needed time to reflect, to let it sink in that she had just briefly soaked her feet in the water where Jesus is said to have been baptized, in the Jordan River. “It’s very profound,” said the 53-year-old visitor from Indiana. “I have not […]
22 hours ago
Associated Press

Today in History: August 18, 19th Amendment is ratified

Today in History Today is Thursday, Aug. 18, the 230th day of 2022. There are 135 days left in the year. Today’s Highlight in History: On Aug. 18, 1587, Virginia Dare became the first child of English parents to be born in present-day America, on what is now Roanoke Island in North Carolina. (However, the […]
22 hours ago
Associated Press

Heavy rains pelt New Zealand, forcing hundreds to evacuate

WELLINGTON, New Zealand (AP) — Heavy rain continued to pelt New Zealand on Thursday, causing further disruptions and road closures from a storm that has already forced hundreds of people to evacuate their homes. Residents in the northern part of North Island found themselves isolated after landslides, fallen trees and floodwaters blocked highway access. The […]
22 hours ago
FILE - Nevada Gov. Steve Sisolak speaks during a news conference on April 29, 2021, in Las Vegas. S...
Associated Press

Nevada gov vows to codify order protecting patients into law

RENO, Nev. (AP) — Nevada Gov. Steve Sisolak said Wednesday that if he wins re-election he would seek to codify in law next legislative session an order he signed that protects in-state abortion providers and out-of-state patients. “Governors are the last line of defense in protecting reproductive freedoms,” he said. “The buck stops with us.” […]
22 hours ago
FILE - Visitors review new Asus computer products at the Computex trade show in Taipei, Taiwan, Tue...
Associated Press

US to hold trade talks with Taiwan in new show of support

BEIJING (AP) — The U.S. government plans talks with Taiwan on a wide-ranging trade treaty in a sign of support for the self-ruled island democracy claimed by China’s ruling Communist Party as part of its territory. The announcement Thursday comes after Beijing held military drills that included firing missiles into the sea to intimidate Taiwan […]
22 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
S&P 500 sets seventh straight all-time high on Wall Street