It was a strong start to the trading week on Monday, as the Dow Jones and S&P 500 closed at record highs.
So far this week, strong earnings from banks, consumer companies and manufacturers have calmed investors’ concerns about higher inflation, supply-chain disruptions and labour shortages. The TSX also closed higher on Monday, extending its winning streak to 14 straight sessions — the longest in Reuters data going back to 1979. It was another record-setting day Tuesday for the S&P 500 and Dow, both of which registered minor gains by day’s end. According to FactSet, of the nearly 150 S&P 500 companies to report quarterly earnings by Tuesday morning, more than 80% had beaten analyst forecasts. In Canada, however, the TSX fell more than 100 points, ending its historic winning streak.
It was an even rougher day for the TSX on Wednesday as Canada’s main stock index fell 218 points — more than 1% — thanks falling oil prices and BoC comments. Meanwhile, after two days of record highs, the Dow and S&P 500 took a step back Wednesday, shedding 266 points and 23 points, respectively. In the U.S., new data revealed that durable goods orders fell 0.4% in September from August, the latest sign that the U.S. economy slowed in the third quarter. As expected on Wednesday, the Bank of Canada held its benchmark rate steady at 0.25% but noted that rates could be rising as soon as next spring. The bank also announced the end of its quantitative easing program and the start of its “reinvestment phase,” where it will purchase only enough bonds to replace existing holdings as they mature. North American markets turned in strong performances on Thursday, lifted by another round of solid earnings reports. By Thursday’s close, the Dow and TSX each added roughly 240 points, while S&P 500 and Nasdaq climbed 45 points and 212 points, respectively.
U.S. Markets Up, TSX Off Slightly
For the four trading days covered in this report, the Dow rose 53 points to close at 35,730, the S&P 500 added 51 points to settle at 4,596, while the tech-heavy Nasdaq jumped 358 points to close at 15,448. In Canada, the TSX slipped 19 points to end at 21,197.
source https://richarddri.ca/earnings-growth-remains-strong-despite-inflation-concerns/
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