Stocks hit records to wrap winning October
Chevron Corp. reported its highest quarterly profit in eight years
Third Bridge TMT global sector lead Scott Kessler says Apple and Amazon earnings fell below estimates due to supply chain issues.
U.S. stocks battled to record highs Friday as investors looked past the impact the supply chain crunch is having on Apple and Amazon.
The Dow Jones Industrial Average rose 89 points, or 0.25%, while the S&P 500 index and the Nasdaq Composite index inched higher by 0.19% and 0.33%, respectively. All three of the major averages closed at all-time highs.
The gains came after the Bureau of Economic Analysis said core personal consumption expenditures prices rose at their fastest annual pace in 30 years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 41794.6 | -257.59 | -0.61% |
| SP500 | S&P 500 | 5712.69 | -16.11 | -0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18179.984429 | -59.93 | -0.33% |
In stocks, Apple Inc. reported sales that fell short of estimates as supply chain bottlenecks cost the company an estimated $6 billion in quarterly revenue. Still, sales were up 29% year over year with iPhone revenue hitting a record $38.87 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 222.01 | -0.90 | -0.40% |
Amazon Inc. missed on both the top and bottom lines and delivered a disappointing outlook for the critical holiday due to concerns over supply chain challenges. CEO Andy Jassy said costs for its consumer business were expected to in the current quarter climb by "several billion dollars" due to increased labor, freight and input costs.
Separately, the e-commerce giant disclosed it holds a 20% stake in electric-vehicle maker Rivian. Ford Motor Co. is also a stakeholder.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 195.78 | -2.15 | -1.09% |
Elsewhere in tech, Western Digital Corp. issued disappointing profit and sales outlooks as the chipmaker struggles to navigate supply chain bottlenecks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WDC | WESTERN DIGITAL CORP. | 65.22 | -0.66 | -1.00% |
Oil giant Chevron Corp. reported its highest profit in eight years and record free cash flow that was boosted by surging oil and gas prices and a lower operating costs. Both earnings and revenue exceeded expectations.
Rival ExxonMobil Corp. reported its highest quarterly profit in four years, but missed on revenue. The company announced plans to buy back up to $10 billion of stock over the next 12 to 24 months.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 153.97 | +0.90 | +0.59% |
| XOM | EXXON MOBIL CORP. | 118.61 | +3.66 | +3.18% |
Meanwhile, Starbucks Corp. revenue fell short of estimates as a resurgence of COVID-19 cases in China shut stores in major cities, resulting in a 7% decline in comparable sales in the country.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 97.03 | -1.84 | -1.86% |
Overseas trading struck a slightly negative tone.
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In commodities, West Texas Intermediate crude oil ticked up 76 cents to $83.54 a barrel and gold dipped $18.60 to $1,783 an ounce.
European bourses were weaker across the board with Britain’s FTSE 100 losing 0.4%, France’s CAC 40 declining 0.42% and Germany’s DAX 30 sliding 0.68%.
In Asia, Hong Kong’s Hang Seng index slumped 0.7% while Japan’s Nikkei 225 and China’s Shanghai Composite index rallied 0.25% and 0.82%, respectively.