innewstoday.net
  • Home
  • Privacy Policy
  • Contact Us
  • Guest Post – Write For Us
  • Sitemap
innewstoday.net

Stocks Finish Mixed After Weak China Growth Data

  • James Gussie
  • October 27, 2021
Total
0
Shares
0
0
0

The Chinese economy is slipping, but it does not seem to have had an adverse effect on stocks. U.S. markets opened mixed after China released its GDP data for the three months ending in September 2018 that showed a slowdown of growth from 6% in July-September 2017 to 5%.

The “how is the stock market doing” is a question that many people ask. The answer to this question depends on where you live and what time of day it is.

Investor excitement about a busy results week that many expect would reveal how firms are coping with inflation and supply-chain difficulties drove the S&P 500 and Nasdaq Composite on Monday. 

The broad benchmark index rose 15.09 points, or 0.3 percent, to 4486.46, extending its winning streak to four days. The Nasdaq Composite, which is heavily weighted in technology, rose 124.47 points, or 0.8 percent, to finish at 15021.81. In contrast, the Dow Jones Industrial Average fell 36.15 points, or 0.1 percent, to 35258.61.

For the last month and a half, the stock market in the United States has been on a roller coaster ride, fueled by fears of inflation and slowing GDP. As supply-chain bottlenecks and labor shortages continue to flare, investors have been processing the potential that inflationary pressures might linger longer than predicted. Concerns have been heightened by signs of slowing economic development in the United States and elsewhere.

However, a good start to the third-quarter results season has helped to calm market nerves in recent days. According to FactSet statistics as of Monday morning, over 81 percent of S&P 500 businesses that have reported thus far have beaten earnings-per-share estimates.

“Many of the firms we’re looking at are expressing really high demand,” said Christopher Harvey, head of equities strategy at Wells Fargo Securities. “We can deal with a scenario where demand is strong but supply is challenging because we’ll ultimately work through supply concerns.” “We’re trying to figure out whether supply-chain difficulties have peaked… [and] if this is the worst it can get.”

Albertsons reported stronger sales on Monday, with officials claiming that shoppers are still spending a lot of money on groceries. Customers may see some price rises from the Boise, Idaho-based firm, but it claims to be providing cheaper options. Its stock increased 95 cents, or 3.3 percent, to $29.51 at the close.

Investors will learn about the profits of a number of firms this week, including Procter & Gamble, Netflix, and American Airlines. Strategists and money managers say they’ll be looking carefully to see whether firms are better able to deal with a variety of concerns, such as supply-chain disruptions and increasing energy costs. Investors will also examine fresh home market statistics.

The Federal Reserve issued data on Monday showing that U.S. industrial production (a measure of manufacturing, mining, and utility activity) fell 1.3 percent in September compared to the previous month. The Wall Street Journal polled economists, who predicted a 0.2 percent increase. The drop in September was the most significant since February. The reduction was attributed to supply-chain interruptions in the car sector and the lingering impacts of Hurricane Ida, according to Monday’s report.

China’s economy increased 4.9 percent year over year in the third quarter, down from 7.9 percent in the second quarter, according to new figures released Monday. A crackdown on the technology, private-education, and real-estate industries, as well as power shortages and supply chain problems, all contributed to the slowdown.

The slower growth figures are “a reminder that China is expected to lose some of its momentum, as well as how global issues like the energy crisis and supply chain issues will filter through to global growth,” according to Edward Park, chief investment officer at Brooks Macdonald in the United Kingdom. “Expectations for China and the rest of the globe have been re-evaluated.” 

Technology stocks did nicely in the US market on Monday. Tesla’s stock rose $27.08, or 3.2 percent, to $870.11 after the company reported profits this week. Facebook closed at $335.34, up $10.58, or 3.3 percent. Twitter rose $2.07, or 3.3 percent, to $64.84 per share.

Utility stocks, on the other hand, fell, with the sector showing the poorest performance of the S&P 500’s 11 groupings. Consolidated Edison closed at $72.89, down $1.58, or 2.1 percent.

Meanwhile, Zillow Group’s Class C shares fell $8.97, or 9.5 percent, to $86 after the real estate firm said it will halt purchasing and flipping new homes for the rest of the year.

Brent crude futures, the worldwide benchmark for oil, fell 0.6 percent to $84.33 a barrel in energy markets. Brent crude gained for the eighth week in a row last week, the longest such trend since a 10-week period from April 30 to May 30, 1999.

According to CoinDesk, Bitcoin, the world’s most valuable cryptocurrency, climbed 3.3 percent from its 5 p.m. ET level Sunday to trade at $61,445.09 at 5 p.m. ET. The first bitcoin exchange-traded fund in the United States is set to begin trading on Tuesday. 

A bitcoin mining operation in upstate New York is powered by the Niagara River and uses energy from a nearby hydroelectric plant.

The yield on the 10-year Treasury note increased to 1.583 percent on Monday, up from 1.574 percent the day before. When prices fall, yields climb. 

Overseas, the Stoxx Europe 600 index dropped 0.5 percent.

Asia’s major indices ended with a mixed result. The Shanghai Composite Index in China was down 0.1 percent. The Hang Seng index in Hong Kong increased by 0.3 percent. 

China’s GDP rose 4.9 percent year over year in the third quarter, according to data released Monday.

THOMAS PETER/REUTERS/PHOTO

—This essay was co-written by Frances Yoon and Anna Hirtenstein. Caitlin McCabe and Caitlin Ostroff can be reached at [email protected] and [email protected], respectively. 

Dow Jones & Company, Inc. All Rights Reserved. Copyright 2021 Dow Jones & Company, Inc. 87990cbe856818d5eddac44c7b1cdeb8

Related Tags

  • dow futures now
  • when is stock market closed
  • is the stock market overvalued
Total
0
Shares
Share 0
Tweet 0
Pin it 0
James Gussie

Previous Article

Robert Pattinson and Matt Reeves on Defining Their Vengeful Dark Knight in The Batman

  • James Gussie
  • October 27, 2021
View Post
Next Article

Case Keenum

  • James Gussie
  • October 28, 2021
View Post
Featured
  • 1
    Fun Computer History Facts
    • June 9, 2022
  • 2
    Why you Might Want to Transfer Your Photos From Dropbox to Google Photos
    • April 14, 2022
  • 3
    A.J. Brown’s second half energizes Tennessee Titans in win over 49ers
    • December 25, 2021
  • 4
    Satisfy your wanderlust by shopping your favorite destinations
    • December 24, 2021
  • 5
    Omicron Drives Record Daily Covid
    • December 24, 2021
Must Read
  • 1
    Apple Watch Series 7: How to preorder right now
  • 2
    Trustees Approve Revised Budget Due to Students Leaving California •
  • 3
    Steelers Injury Update: 2 Ruled Out vs. Bengals
innewstoday.net
  • Home
  • Privacy Policy
  • Contact Us
  • Guest Post – Write For Us
  • Sitemap
Stay Updated Always.

Input your search keywords and press Enter.