Jakarta, CNBC Indonesia – The United States (US) stock market rose at the opening of trading Friday (10/14/2021), following the release of the financial performance of big-name issuers that was better than expected.
The Dow Jones Industrial Average jumped 230 points (+0.75%) at 08:30 local time (20:30 GMT) and within 25 minutes to 260.9 points (+0.75%) to 35,173.45. The S&P 500 index grew 23.1 points (+0.52%) to 4,461.38. The Nasdaq added 40.7 points (+0.27%) to 14,864.16.
Yesterday the S&P 500 index scored its best daily rally since March with a 1.7% jump, following expectations of financial performance expectations of giant issuers. The Dow Jones jumped 1.55%, while the Nasdaq added 1.7%, its best performance since May.
Bank of America, Morgan Stanley and Citigroup scored stronger financial performances that beat market expectations. Goldman Sachs released a financial performance that topped expectations, sending its share price up 1% at the open.
“The bank’s performance illustrates the strong and healthy performance of the US consumer sector,” said Edward Moya, senior analyst at Oanda. CNBC International.
So far, 80.5% of the 41 S&P 500 constituency issuers that have released their performance have posted above-expected earnings per share, according to FactSet. On average, their net profit in the third quarter of 2021 increased by 29.8%.
Retail sales data also came as a surprise, rising 0.7% in September, better than economists forecast in a Dow Jones poll for a 0.2% pressure. The University of Michigan will follow suit with the release of consumer sentiment.
Lower weekly jobless claims also helped strengthen market sentiment, where last week’s claims figure was 293,000, the first time below the 300,000 level during the pandemic.
Investors shrugged off US September inflation which grew 0.4% m/m and 5.4% yoy, or higher than economists forecast in a Dow Jones survey that forecast growth figures of 0.3% m/m and 5.3% y/o.
Core inflation recorded an increase of 0.2% on a monthly basis and 4% on a yearly basis, or relatively the same as forecast which ended up at 0.3% and 4%, respectively.
CNBC INDONESIA RESEARCH TEAM
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