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Stock Market News for Nov 2, 2021

U.S. stock markets closed at record-highs on Monday exhibiting a strong start to November.

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This story originally appeared on Zacks

U.S. stock markets closed at record-highs on Monday exhibiting a strong start to November. Strong third-quarter 2021 earnings results and global economic recovery have boosted market participants’ confidence. Higher crude oil price lifted shares of energy companies. All three major stock indexes ended in green.

- Zacks

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.3% to close at 35,913.84, marking its all-time closing high. In intraday trading, the blue-chip index recorded a fresh all-time high of 36,009.74, reflecting its first touch to a key milestone of 36,000. Notably, 19 components of the 30-stock index ended in the green while 11 in red.  

The tech-heavy Nasdaq Composite finished at 15,595.92, gaining 0.6% due to strong performance by large-cap technology stocks. This marked the tech-laden index’s new closing high. In intraday trading, the index recorded a fresh all-time high of 15,598.95.

Meanwhile, the S&P 500 increased 0.2% to end at 4,613.67. This marked the broad-market index’s new closing high. In intraday trading, the index registered a fresh all-time high of 4,620.34. Nine out of eleven sectors of the benchmark index closed in positive territory and two in red. The Consumer Discretionary Select Sector SPDR (XLY) and the Energy Select Sector SPDR (XLE) surged 1.8% and 1.7%, respectively.

The fear-gauge CBOE Volatility Index (VIX) was up 0.9% to 16.41. A total of 10.5 billion shares were traded on Monday, higher than the last 20-session average of 10.3 billion. Advancers outnumbered decliners on the NYSE by a 2.84-to-1 ratio. On Nasdaq, a 23.05-to-1 ratio favored advancing issues.

Strong Third Quarter Earnings Results So Far

The third-quarter 2021 earnings season has picked up from where it ended in the second quarter.  Results are pretty encouraging so far despite prolonged supply-chain disruptions, a labor shortage, higher inflationary pressure and the resurgence of the Delta variant of the coronavirus.

As of Oct 29, 279 S&P 500 companies reported third-quarter results. Total earnings of these companies are up 39.2% year over year on 17.8% higher revenues with 82.1% beating EPS estimates and 73.5% surpassing revenue estimates.

At present, total third-quarter earnings of the market's benchmark — the S&P 500 Index — are projected to jump 37.6% from the same period last year on 14.9% higher revenues. This suggests a steady improvement from 26.1% earnings growth on 14% higher revenues, estimated at the beginning of the reporting cycle.  

Crude Oil Price Rises

The global economy is currently witnessing solid recovery from the pandemic. The rapid spread of the Delta variant of coronavirus has declined sharply since September. Consequently, demand for crude oil has increased throughout the world.

On Nov 1, price of the U.S. crude oil benchmark – the WTI – for December future rose $0.48 or 0.6%, to settle at $84.05 a barrel. As a result, shares of Occidental Petroleum Corp. OXY and Marathon Oil Corp. MRO climbed 3.8% and 4.4%, respectively. Marathon sports a Zacks Rank #1 (Strong Buy) and Occidental Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Economic Data

The Institute of Supply Management reported that the U.S. Manufacturing activities for the month of October came in at 60.8 compared with 61.1 in September. The consensus estimate was 60.5. Any reading above 50 means expansion in manufacturing activities and a reading above 60 is recognized as exceptional.

The IHS Markit reported that the final reading of the U.S. Manufacturing PMI (purchasing managers’ index) for October fell to 58.4 compared with 59.2 in the initial reading. Any reading above 50 means expansion in manufacturing activities.

Construction Spending for September fell 0.5% in contrast to the consensus estimate of an increase of 0.4%. August’s data was revised upward to a gain of 0.1%.

Stocks That Have Made Headline

Diamondback Beats on Q3 Earnings, Hikes Dividend

Diamondback Energy Inc. FANG reported third-quarter 2021 adjusted earnings of $2.94 per share, which surpassed the Zacks Consensus Estimate of $2.81. (Read More)



5 Stocks Set to Double

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Marathon Oil Corporation (MRO): Free Stock Analysis Report

 

Occidental Petroleum Corporation (OXY): Free Stock Analysis Report

 

Diamondback Energy, Inc. (FANG): Free Stock Analysis Report

 

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