NEW YORK (AFP) – Wall Street stocks powered to fresh records on Thursday (Oct 28) behind another round of strong results that offset disappointing United States economic growth figures.
The Nasdaq finished at 15,448.12, up 1.4 per cent, an all-time high, and the broad-based S&P 500 jumped 1 per cent to 4,596.42, its fourth record in the last week and half.
The Dow Jones Industrial Average advanced 0.7 per cent to 35,730.48.
Several leading companies surged after reporting earnings, including Ford, which jumped 8.7 per cent after results topped estimates, and Caterpillar, which gained 4.1 per cent after executives said they had passed on price increases to customers.
“The market has looked through supply chain challenges and looked at the surge in growth,” said National Securities chief strategist Art Hogan.
He also said markets were feeling more optimistic about the prospects for major infrastructure and social spending legislation after the latest push by US President Joe Biden, who unveiled a new framework he said would have Democratic support.
Strong earnings overshadowed data showing the US economy grew by just 2 per cent in the third quarter, down from the 6.7 per cent annual rate in the prior quarter as resurgent Covid-19 infections slowed consumer activity amid supply bottlenecks.
Meanwhile, the Labour Department reported 281,000 new jobless benefit claims were filed in the week ended Oct 23, a decrease of 10,000 from the prior week and fewer than analysts had forecast.