Wall St. collars corpulent gains as S&P 500, Nasdaq hit records on earnings optimism



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Wall St. collars corpulent gains as S&P 500, Nasdaq hit records on earnings optimism

On Thursday, all three major indices of Wall St. had eked out lofty gains with Wall Street bellwether S&P 500 alongside tech-heavy Nasdaq hitting record closures, mostly driven by the gains in Apple Inc and Amazon, while robust quarterly earnings’ results from heavy-equipment maker Caterpillar alongside drugmaker Merck & Co had calmed investors’ nerve following reveal of a weaker-than-anticipated US GDP growth in Q3, 2021.

If truth is to be spoken, in the day’s large gains in the Wall Street with both growth and value stocks faring well, was almost entirely galvanized by a raft of gnarly quarterly earnings’ reports, however, in after-market trading, shares’ prices of both Amazon.com Inc alongside Apple Inc ebbed off after release of their quarterly earnings’ reports.

However, in the day’s Wall St round-off, Apple Inc had closed the session 2.5 per cent higher, but lost as much as 3.0 per cent in post-market trading following a forecast that an ongoing supply chain crises would cost the iPhone maker a jawdropping $6 billion in sales over Q4, 2021, while Amazon.com Inc shed 4.0 per cent in after-market trading after winding up the session 1.59 per cent higher to $3,446.57.

The world’s largest online retailer’s Q4, 2021 sales forecast had fallen well short of Wall Street analysts’ estimates. Nonetheless, earlier in the day, US Commerce Department said in a statement that the US had notched just a 2.0 per cent in Q3, 2021 GDP growth, the slowest gain in more than a year, however, investors’ angsts were tranquilized by a swathe of upbeat Q3 earnings’ reports as beforementioned.

Wall St. gains on earnings’ optimism

Citing statistics, in the day’s Wall St. round-off, trade-sensitive Dow ended 0.68 per cent higher to 35,730.48 and benchmark S&P 500 gained 0.98 per cent to 4,596.42, while Nasdaq took a torrential high-tide of as much as 1.39 per cent to curtain the day at 15,448.12.

Meanwhile, addressing to a booming Q3 earnings’ season, a chief investment officer at the Glenview Trust Co in Louisville, Kentucky, Bill Stone said, “Earnings continue to be very good. Underneath the surface, that's a positive for corporate earnings going forward”.