US Stock Market Posts New Record Highs On Strong Retail Earnings

The US stock market hit new record highs yesterday as retail businesses posted strong earnings during the third quarter. In addition, the latest unemployment data also shows that the labor market is nearing a full recovery. 

RELATED: S&P 500 Index Hits New Record Again

US Stock Market Posts Record Highs

During yesterday’s market session, the three major indices posted record gains. The S&P 500 went up by 15.87 points or 0.3%  to 4,704.54. This is the 66th record high posted by the S&P 500 for the year.

Meanwhile, the Nasdaq Composite Index also reached a record high. The tech-heavy index gained 72.14 points (0.5%) to 15,993.71.

In the lone decline, the Dow Jones Industrial Average slipped 60.10 points, or 0.2%, to 35,870.95. The DJIA recently posted it's all-time high of 35,669.69 earlier this year. 

Earlier this week, stocks continue to post ups and downs. Many companies disclosed their earnings reports, with some posting strong numbers.

However, many firms also had to deal with supply chain issues and higher prices. Thankfully, stellar earnings reports from Macy’s and Kohl’s led Thursday’s session.  

Markets Still Figuring Out Inflation

Jim Polk, head of equity investments at Homestead Funds, says that companies are dealing with the upheavals. “Markets are trying to figure inflation out, and maybe part of that is just how temporary the situation will be.

Concerns about congestion and how much that’s impacting inflation—those are really the big things,” Polk said. 

Meanwhile, George Cipolloni, portfolio manager at Penn Mutual Asset Management, recommends holding small-cap stocks. “Consumers are taking whatever is on the shelves at whatever prices they are listed at, so that’s really good for retailers and margins,” he said. 

Unemployment Data Shows Decline In Jobless Americans

The latest unemployment data showed 268,000 people filed for jobless claims in the week ending November 13. This is a significant decline from the previous weeks.

Specifically, the number of claims are beginning to look like pre-pandemic numbers. In a tight labor market, many employers are holding tight to the employees. 

In addition, investors are monitoring the Federal Reserve Sweepstakes. President Joe Biden hinted that he might disclose his choice to lead the Federal Reserve this week.

Biden’s two finalists are current chairman Jerome Powell and Fed Governor Lael Brainard.

Cryptocurrency, Treasury Notes and Oil

Outside the stock market, things are also going up and down. After a recent blitz that pushed BItcoin to record highs, the cryptocurrency is now trading at $57,797.

Meanwhile, the benchmark US 10-year Treasury note fell to 1.586%. This is the largest two-day decline in the last two weeks. In addition, Brent crude rose slightly, gaining 96 cents a barrel. 

Among the stock market performers yesterday, Technology firm Nvidia gained 8.3% to close at $24.14 after posting record quarterly revenue. Cisco Systems fell by 5.5% to close at $53.63.

The network company issued earnings guidance that’s smaller than Wall Street’s estimates. Nvidia said that the current semiconductor shortage is affecting the business.

Meanwhile, electric vehicle companies Rivian Automotive and Lucid Group are now dealing with extended losses after posting gains in the last few days. 

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Do you think that the stock market's recent run of record highs will continue until the end of the year? How does inflation figure in the conversation?

Let us know what you think about the market’s current mood. Share your comments in the comments section below.