Record High In S&P 500 Extends Weekly Gains to Fifth Consecutive Week

Barry Adams
11 Oct, 2024
New York City

Benchmark indexes headed for the fifth winning weak on Wall Street as investors reviewed the latest earnings from banks and wholesale inflation. 

The S&P 500 increased 0.2% and the Nasdaq Composite edged lower 0.2% after the measure of wholesale inflation showed a cooling trend in September. 

For the week, the S&P 500 index is up 0.5% and the Nasdaq Composite advanced 0.8% as of the end of close on Thursday. 

Producer price inflation was flat from the previous month following the increase of 0.2% in the previous month, the U.S. Bureau of Labor Statistics reported Friday. 

On an annual basis, the measure of wholesale inflation slowed to 1.8% from an upwardly revised 1.9% in the previous month. 

However, the core rate of inflation, which excludes food and energy prices, accelerated to 2.8% from 2.7% in the previous month. 

Despite the cooling trend in overall inflation, core wholesale inflation rose, confirming the similar trend in consumer price inflation. 

Investors have been ignoring the rise in core inflation, which is driven by service inflation, and despite the Fed's eleven rate hikes over 2022 and 2023, inflation has failed to slow to the target rate of 2%. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,789.69, the Nasdaq Composite fell 0.2% to 18,246.11, and the Russell 2000 index declined 0.5% to 2,189.52.

The yield on 2-year Treasury notes edged lower to 3.97%, 10-year Treasury notes inched up to 4.10%, and 30-year Treasury bonds inched higher to 4.41%.

WTI crude oil increased $0.71 to $75.13 a barrel, and natural gas prices edged down 1 cent to $2.65 a thermal unit.

Gold rose by $14.60 to $2,647.15 an ounce, and silver increased by $0.21 to $31.24.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 102.98.

 

U.S. Stock Movers

Stellantis NV decreased 3.5% to $12.84, and the parent of Chrysler announced a management shakeup that will change the heads of the Alfa Romeo, Jeep, and Maserati brands. 

The company also announced that the current chief executive will retire at the end of his term in 2026. 

JPMorgan Chase rose 5% to $223.34 after the New York-based bank reported better-than-expected quarterly results. 

Revenue in the third quarter increased 6% to $43.32 billion, and net income declined to $12.9 billion from a year ago. 

Net interest income rose 3% to $23.3 billion, fixed income trading revenue was unchanged at $4.5 billion, and investment banking fees increased 31% to $2.27 billion. 

The company raised its net interest income estimate for the year to $92.5 billion from the previous estimate of $91 billion. 

The company increased its loan loss reserve to $3.1 billion to cover the loan loss charge of $2.1 billion and provide an extra cushion of $1 billion for the future. 

Wells Fargo increased 5.7% to $61.05 after the bank reported better-than-expected quarterly results. 

Revenue in the third quarter declined 2% to $20.4 billion from $20.9 billion, net income dropped to $5.1 billion from $5.8 billion, and diluted earnings per share fell to $1.42 from $1.48 a year ago. 

BlackRock increased 3% to $984.58, and the asset management company reported strong quarterly results. 

Revenue in the third quarter increased 15% to $5.2 billion from $4.5 billion, net income advanced 2% to $1.63 billion from $1.6 billion, and diluted earnings per share rose 2% to $10.90 from $10.66 a year ago. 

Assets under management increased 15% to $11.475 trillion from $9.10 trillion, driven by a total net inflow of $221.8 billion.