Stocks edge higher on Wall Street, led by health care
Stocks rose in midday trading on Wall Street Wednesday and health care companies were leading the way for the second day in a row
BEIJING — Stocks rose in midday trading on Wall Street Wednesday with health care companies leading the gains for a second day in a row.
The S&P 500 rose 0.3% as of 11:42 a.m. Eastern. The benchmark index has made gains over the last five days and is just below its all-time high set on Sept. 2.
The Dow Jones Industrial Average rose 130 points, or 0.4%, to 35,584 and the Nasdaq rose 0.1%.
Wall Street cheered solid earnings from a variety of health care companies. Abbott Laboratories, which makes infant formula, medical devices and drugs, rose 3.2% after handily beating analysts’ third-quarter profit forecasts. Health insurer Anthem rose 6.6% and drug developer Biogen rose 0.4% after also reporting strong financial results.
Technology stocks lagged the broader market. Bond yields were relatively stable. The yield on the 10-year Treasury rose to at 1.64% from 1.63% late Tuesday.
Netflix fell 0.8% after forecasting earnings for its current quarter that were below analysts’ estimates.
The price of Bitcoin rose 3.6% to over $66,795, reaching an all-time high. The gains came a day after the first exchange-traded fund linked to Bitcoin futures attracted huge interest from investors looking to get into the surging field of cryptocurrencies.
Investors are busy reviewing the latest report cards from companies as they try to get a clearer view of the economic path forward amid rising inflation and a lingering threat from COVID-19.
A key concern remains supply chain disruptions and rising materials costs cutting into profits for many companies. Higher costs for companies could mean higher prices for consumers, which could threaten spending that is supporting the economic recovery.
Oilfield services company Baker Hughes fell 7.6% after reporting weak third-quarter financial results, partly because of supply chain problems and higher costs. Brinker International, which operates Chili’s Grill & Bar, fell 4.1% after its fiscal first-quarter profit fell far short of analysts’ forecasts as it faces higher commodity and labor costs.
Rising inflation has also put a sharper focus on the Federal Reserve and its plans to start trimming bond purchases that have helped keep interest rates low. The central bank maintained through most of the year that inflation would likely be temporary and tied to the economic recovery, but it has grown more concerned about rising inflation persisting.
There are still several large companies on deck to report earnings this week. Railroad operator CSX and electric vehicle maker Tesla will report financial results after the market closes Wednesday. American Airlines, Southwest Airlines and Union Pacific. will report results on Thursday.
