The Dow Jones Industrial Average extended its record closing streak on Thursday as traders assessed the latest economic data along with corporate earnings performances. The Dow climbed by 0.4% to reach a closing figure of 43,239.1. Meanwhile, the S&P 500 and Nasdaq Composite saw little change, closing at 5,841.5 and 18,373.6, respectively.
The energy and technology sectors led the gains, while utilities experienced the most significant downturn. In terms of economic performance, U.S. retail sales experienced a greater-than-expected increase in September, driven by heightened spending at restaurants and apparel stores, indicating that consumers continue to exhibit resilience during the crucial back-to-school shopping period.
However, U.S. industrial production fell more than anticipated last month, largely impacted by a strike at the plane manufacturer Boeing and the effects of two hurricanes, as reported by Federal Reserve data. Furthermore, weekly applications for unemployment insurance in the United States witnessed a decline last week, though continuing claims surged to their highest level since late July, according to government statistics.
Such patterns in retail sales, unemployment claims, and industrial production further supports BMO's perspective that the Federal Reserve will implement interest rate cuts at a more gradual pace. The central bank had reduced its benchmark lending rate by 50 basis points last month, marking its first reduction since March 2020.
Confidence among U.S. homebuilders also increased for a second consecutive month in October, driven by expectations that mortgage rates may stabilize in the forthcoming months, based on insights from the National Association of Home Builders and Wells Fargo. NAHB Chairman Carl Harris remarked, 'While housing affordability remains low, builders are feeling more optimistic about market conditions in 2025.' He added that 'the wild card for the outlook remains the upcoming U.S.
presidential election.' As for bond yields, the U.S. 10-year yield rose by eight basis points to 4.1% on Thursday, while the two-year rate gained 4.1 basis points to 3.98%. In company-specific news, shares of Blackstone experienced a notable increase of 6.3%, ranking among the top gainers on the S&P 500, thanks to the alternative asset manager's third-quarter earnings surpassing Wall Street's expectations, coupled with growth in assets under management.
Taiwan Semiconductor Manufacturing issued positive fourth-quarter revenue guidance, reflecting a robust demand landscape in the artificial intelligence and smartphone sectors, leading to a 9.8% surge in its U.S.-listed shares. Broadcom and Micron Technology shares advanced by 2.7% and 2.6%, respectively, becoming the leading performers on the Nasdaq.
However, Elevance Health experienced the second-largest decline on the S&P 500, dropping nearly 11% after substantially lowering its full-year earnings outlook. Although the company exceeded revenue expectations in the third quarter, its bottom line fell short due to challenges within the Medicaid business.
Shares of CSX faced a slump of 6.7%, marking it as the worst performer on the Nasdaq and one of the bottom-tier performers on the S&P 500 after the rail-based freight transportation company released third-quarter results that did not meet market forecasts. Additionally, the firm anticipates that the impact of Hurricane Helene will be more significant in the current quarter than in the previous three-month period.
In commodities, West Texas Intermediate crude oil experienced a rise of 0.5%, reaching $70.75 per barrel. Meanwhile, commercial crude stockpiles in the U.S. recorded a surprising decline last week, according to government reports. In international news, Israel reported that its military forces eliminated Hamas leader Yahya Sinwar on Wednesday, as reported by CNBC.
Gold saw a slight increase of 0.6%, priced at $2,706.80 per troy ounce, while silver fell by 0.3% to $31.87 per ounce..