Tech dented by earnings after S&P record
US stocks rose to the first all-time high since 2 September, powered by a spate of strong corporate results and positive news on the fight against the virus.
The mood soured after the cash session, when Snap Inc (SNAP US) plunged more than 25% after reporting results that missed estimates. The owner of the Snapchat app was weighed down by Apple Inc’s (AAPL US) new data collection restrictions and their effect on digital advertising measurements. The main exchange-traded fund tracking the Nasdaq 100 lost 0.6%, as other social media stocks slumped in afterhours.
Intel (INTC US) also sank after reporting results, helping to overshadow a late-session rally that had lifted the S&P 500 Index for a seventh straight gain, the longest streak since July. Shares in stocks that benefit from a strong economy rallied after better-than-expected earnings. – Bloomberg News.
Market-implied expectations for US inflation for the next half-decade have surged to the highest in 15 years as more investors have been losing faith in the Federal Reserve narrative that rising prices will be “transitory”.
With stocks at highs, traders are braced for swings in the market while also keeping a close eye on company margins, pricing power, and outlooks.
The S&P 500 gained 0.30% to 4,549.78. The Nasdaq Composite Index closed 0.62% higher at 15,215.70 and the Dow Jones Industrial Average closed little changed at 35,603.08.
UK natural gas production could get a much-needed increase from the start of two new North Sea projects, providing some relief to the region’s strained energy system.
Even a small addition to the UK’s domestic output is good news for the country, where a supply crunch pushed gas and power prices to unprecedented highs. High energy costs are compounding concerns about inflation and adding to the rising overheads businesses across Europe are already shouldering for raw materials.
UK gas output tumbled earlier this year amid heavy pipeline and field maintenance and as the pandemic forced companies to defer new projects.
While the new fields provide some supply relief, longer-term prospects are unclear with new developments facing pressure amid climate debates. Earlier this month, Shell’s (RDSA LN) Jackdaw gas and condensate development failed to get required environmental approval from the UK regulator and is now weighing changes to the project. – Bloomberg News.
The Stoxx Europe 600 Index closed little changed at 469.71 on Thursday (21 October).
Tokyo is set to roll back restrictions that limited the operating hours and alcohol service of bars and eateries from Monday (25 October), as coronavirus cases drop nationwide, and authorities look to open more parts of the economy.
The Tokyo Metropolitan Government plans to formally lift the restrictions for restaurants and bars that meet its criteria for taking appropriate measures to limit the spread of infections, Kyodo News and other local media reported, citing unnamed officials.
The move would have a widespread impact in Japan’s capital since about 85% of those establishments have already met the requirements, according to national public broadcaster NHK.
The moves come as daily recorded Covid cases in Tokyo have dropped to double digits from 9 October after hitting over 5,000 several days in August during a wave powered by the delta variant.
Japan at the end of September lifted a national virus emergency in place for Tokyo and 18 other areas, easing restrictions that have dragged on the economy. – Bloomberg News.
The Nikkei 225 Index was 0.19% lower at 28,653.00 on Friday (22 October) after tumbling 1.87% to 28,708.58 the previous session.
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