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The Standard & Poor’s 500 Index, as a representative of the health of retirement and college savings accounts, rose for the sixth time in a row, closing the day up 0.4%, as the steady earnings spurred investors’ hopes.
The healthy earnings of healthcare companies helped drive the wide-ranging gains in Wall Street stocks on Wednesday and pushed the benchmark S&P 500 index to within the range of all-time highs.
The S&P 500 index, which measures the health of retirement and college savings accounts, rose 0.4% for the sixth time in a row. Closed at 4,536.19. The Dow Jones Industrial Average rose 0.4% to 35,609.34, and the technology stock Nasdaq fell less than 0.1% to close at 15,121.68.
Sylvia Jablonski, Chief Investment Officer of Defiance ETFs, said: “The reason we saw this rebound last week is that company earnings look very good.” “Most companies are managing inflationary pressures and pricing issues, which helps to alleviate Overvaluation and inflation concerns.”
Wall Street hailed the solid earnings of various healthcare companies. Abbott Laboratories, which produces infant formula, medical devices and pharmaceuticals, rose 3.6% after easily exceeding analysts’ third-quarter profit expectations. Health insurance company Anthem also rose 7.2% after reporting strong financial results.
However, technology stocks are lagging behind the broader market.
Netflix shares fell 1.9% after the company predicted that its profit for the quarter was lower than analysts expected.
PayPal fell 4.9% after reports that it was considering buying digital boards and shopping tool Pinterest, which rose 13.9%.
The price of Bitcoin rose 3.5% to more than $66,667. It hit a record high earlier in the day. Earnings came the day after the first exchange-traded fund related to Bitcoin futures attracted great interest from investors hoping to enter the soaring cryptocurrency space.
With rising inflation and the lingering threat of COVID-19, investors are busy checking the company’s latest report card as they try to get a clearer picture of the way the economy is going.
A key issue remains that supply chain disruptions and rising material costs have cut profits for many companies. Rising company costs may mean rising consumer prices, which may threaten spending to support economic recovery.
Oilfield services company Baker Hughes fell 5.2% after reporting weak third-quarter financial results, partly due to supply chain issues and rising costs. Shares of Brinker International, which operates Chili’s Grill & Bar, fell 9.1% because it faced higher commodity and labor costs, and its first-quarter profit was much lower than analysts expected.
Greg Bassuk, CEO of AXS Investments, said that investors appear to be calmly coping with the impact of rising inflation on the company.
He said: “There are no big surprises on the downside, or nothing particularly big. The bulls are surpassing the bears.”
Rising inflation has also caused the Fed to pay more attention to the Fed and its plan to start reducing bond purchases, which help keep interest rates low. For most of the year, the central bank believes that inflation may be temporary and related to economic recovery, but it is increasingly worried that inflation will continue to rise.
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