S&P 500 reaches another record high
Stocks closed broadly higher on Wall Street Thursday, marking more record highs for the S&P 500 and the Nasdaq.
The S&P 500 rose 1%, posting its third all-time high this week. More than 80% of the stocks in the benchmark index closed higher. Technology stocks, banks and a mix of companies that rely on consumer spending accounted for much of the gains.
The Nasdaq rose 1.4%, nudging the tech-heavy index above its previous record high set Sept. 7. The Dow Jones Industrial Average rose 0.7%, leaving it just shy of the all-time high it set on Tuesday.
Ford jumped 8.7% after reporting earnings that easily beat analysts’ forecasts and raising its outlook for the year. Heavy equipment maker Caterpillar rose 4.1% after turning in strong results. The yield on the 10-year Treasury rose to 1.57%.
Apple suffers blow from supply shortage
Apple’s iPhone sales soared yet again in the past quarter, but didn’t grow as rapidly as analysts anticipated because of supply shortages that have made it more difficult to meet the demand for a wide range of products.
Until recently, the shortages that affected everything from automobiles to video game consoles haven’t been a major problem for Apple. Although the company’s quarterly results released Thursday served as evidence of its products’ continuing success, they also showed Apple isn’t immune to the supply headaches.
The company earned $20.6 billion, or $1.24 per share, during the July-September period, a 62% increase from the same time last year. Revenue climbed 29% from the same time last year to $83.4 billion.
While Apple’s earnings matched analysts estimates, its revenue fell below projections. Apple CEO Tim Cook said supply shortages lowered sales by $6 billion.
Unemployment claims dip to pandemic low
The number of Americans applying for unemployment benefits fell to a pandemic low last week, another sign that the job market and economy continue to recover from last year’s coronavirus recession.
Jobless claims dropped by 10,000 to 281,000, lowest since mid-March 2020, the Labor Department said Thursday. Since topping 900,000 in early January, weekly applications have steadily dropped, moving ever closer to pre-pandemic levels just above 200,000.
In all, 2.2 million people were collecting unemployment checks the week of Oct. 16, down from 7.7 million a year earlier.