The Dow Jones Industrial Average extended its record closing streak on Thursday as traders assessed the latest economic data and corporate earnings reports. The Dow rose by 0.4%, reaching 43,239.1, while the S&P 500 and Nasdaq Composite closed nearly unchanged at 5,841.5 and 18,373.6, respectively. Notably, the energy and technology sectors saw the most significant gains, whereas utilities experienced the steepest declines. In the realm of economic indicators, US retail sales exceeded expectations in September, buoyed by increased spending at restaurants and apparel stores.
This uptick suggests that consumers are displaying resilience during the crucial back-to-school shopping period. Conversely, US industrial production dropped more than anticipated last month, impacted by a strike at Boeing and two severe hurricanes, as reported by Federal Reserve data. In the labor market, weekly applications for unemployment insurance in the US fell last week, although ongoing claims have risen to their highest level since late July, according to government data. The substantial retail sales, jobless claims, and industrial production data strengthen BMO's perspective that the Federal Reserve will adopt a more gradual approach in cutting interest rates.
Last month, the central bank reduced its benchmark lending rate by 50 basis points, marking its first reduction since March 2020. In the housing sector, builder confidence increased for a second consecutive month in October, with expectations that mortgage rates will stabilize in the coming months, according to data from the National Association of Home Builders and Wells Fargo. "Despite low housing affordability, builders are optimistic about the market conditions in 2025," stated NAHB Chairman Carl Harris.
"The upcoming US presidential election remains a wild card for the market outlook." The yield on the US 10-year Treasury note climbed eight basis points to 4.1% on Thursday, and the two-year rate rose 4.5 basis points to 3.98%. In corporate developments, Blackstone shares surged by 6.3%, becoming one of the leading gainers on the S&P 500.
The alternative asset manager reported Q3 earnings that surpassed Wall Street's expectations, alongside an increase in assets under management. Taiwan Semiconductor Manufacturing issued a positive Q4 revenue forecast, driven by robust demand in the artificial intelligence and smartphone sectors. The company's US-listed shares jumped by 9.8% in response. Additionally, Broadcom and Micron Technology shares saw gains of 2.7% and 2.6%, respectively, making them the standout performers on the Nasdaq. On the other hand, Elevance Health witnessed a nearly 11% decline, the second-largest drop on the S&P 500, after the health insurer revised its full-year earnings outlook downward.
The company did report Q3 revenue that exceeded analyst predictions, but earnings fell short due to challenges within its Medicaid division. CSX shares plummeted by 6.7%, emerging as the worst performer on the Nasdaq and one of the laggards on the S&P 500. The rail-based freight transportation supplier reported Q3 results that did not meet market estimates, citing that the impact of Hurricane Helene will be more significant in the current quarter compared to the previous three-month period. In commodities, West Texas Intermediate crude oil rose by 0.5% to $70.74 per barrel on Thursday, while commercial crude stockpiles in the US reported an unexpected draw last week, according to government data.
Furthermore, Israel's military announced on Thursday that its forces killed Hamas leader Yahya Sinwar the day prior, as reported by CNBC. Gold prices increased by 0.6% to $2,707.30 per troy ounce, while silver prices fell by 0.3% to $31.87 per ounce..