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Dow Reaches New Record Intraday High

wallst 032918 20oct21 lt

Stocks moved mostly higher during trading on Wednesday, with the Dow reaching a new record intraday high during the session. The tech-heavy Nasdaq bucked the uptrend, edging slightly lower.

The Dow climbed 152.93 points or 0.4 percent to 35,609.34 and the S&P 500 rose 16.56 points or 0.4 percent to 4,536.19. Meanwhile, the Nasdaq edged down 7.41 points or 0.1 percent to 15,121.68.

The continued strength on Wall Street came as traders reacted positively to another batch of largely upbeat corporate earnings news.

Shares of Verizon (VZ) saw notable strength after the telecom giant reported better than expected third quarter earnings and raised its full-year guidance.

On the other hand, shares of Netflix (NFLX) moved lower after the streaming giant reported third quarter earnings that beat expectations but provided disappointing guidance.

Traders largely shrugged off the Federal Reserve's Beige Book, which noted the pace of U.S. economic growth has recently slowed.

The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, attributed the slowdown to supply chain disruptions, labor shortages, and uncertainty around the Delta variant of COVID-19.

The Fed also said employment increased at a modest to moderate rate in recent weeks, as demand for workers was high, but labor growth was dampened by a low supply of workers.

Sector News

Banking stocks turned in some of the market's best performances on the day, driving the KBW Bank Index up by 2 percent to a record closing high.

Significant strength was also visible among housing stocks, as reflected by 1.7 percent gain posted by the Philadelphia Housing Sector Index. The index ended the session at its best closing level in over a month.

Utility stocks also saw considerable strength on the day, resulting in a 1.5 percent advance by the Dow Jones Utilities Average. The average also reached a one-month closing high.

Commercial real estate, natural gas and networking stocks also saw notable strength on the day, moving higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index inched up by 0.1 percent, while China's Shanghai Composite Index edged down by 0.2 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index rose by 0.5 percent, U.K.'s FTSE 100 Index and the German DAX Index both crept up by 0.1 percent.

In the bond market, treasuries showed a lack of direction over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ticked up by less than a basis point to 1.636 percent.

Looking Ahead

Earnings news is likely to remain in the spotlight on Thursday, with IBM Corp. (IBM) and Tesla (TSLA) among the companies releasing their quarterly results after the close of today's trading.

AT&T (T), Dow (DOW), American Airlines (AAL), KeyCorp (KEY), Quest Diagnostics (DGX), and Southwest Airlines (LUV) are also among the companies due to report their results before the start of trading on Thursday.

Trading on Thursday could also be impacted by reaction to reports on weekly jobless claims, existing home sales and leading economic indicators.

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