On Tuesday, the leading indicators of the US stock market soared to record highs amid spectacular internal statistics of companies from the United States. The published reports of large enterprises have significantly improved investor sentiment regarding their securities.
Another tangible growth factor for the main indicators of Wall Street was the restless expectation by stock market participants of the results of an important meeting of the US Federal Reserve.
As a result, the S&P 500 and NASDAQ Composite stock indexes were at historical highs for the fourth consecutive session. Thus, the first of them increased by 0.37% to 4630.65 points, and the second – by 0.34% to 15649.60 points.
Meanwhile, the DJIA indicator reported another record closing for the third session in a row, gaining 0.39% and breaking through the 36,000 mark (Tuesday's trading result – 36052.63) points for the first time in history.
The strong reporting of companies from the United States in the third quarter against the backdrop of the recovering economy after the pandemic significantly exceeded the expectations of market participants. Most major manufacturers were able to increase product prices, maintain a steady level of profit margin and take advantage of high demand by increasing their revenue.
Spectacular reports from the largest US manufacturers continue to provide tangible support to the stock market. At the time of writing, about 320 companies have published internal statistics.
According to analysts' forecasts, the profit of the companies that make up the S&P 500 index in the third quarter will increase by 40.2% compared to the same period in 2020.
Shares of the American pharmaceutical giant Pfizer soared by 4.1% after the company announced that it expects sales of the COVID-19 vaccine, created jointly with the German manufacturer BioNTech, to increase to $36 billion. In the third quarter of this year, Pfizer's net profit increased 5.5 times, and revenue - 8.5 times. In addition, the company's analysts have significantly improved the annual forecast.
The stock quotes of the electric car manufacturer Tesla lost 3% on Tuesday. The company plans to recall more than 11,000 electric vehicles. The reason for the recall is an error in the software. Another important downward factor for Tesla securities was a message on Twitter from the company's director, Elon Musk. In his social network account, the entrepreneur announced that the deal with the American company Hertz Global Holdings Inc. for the purchase of 100,000 Tesla electric vehicles remains unsigned.
Shares of ConocoPhillips oil company from the United States sank 2.1%. It is reported that in the third quarter the company returned to profit due to a jump in the cost of hydrocarbons. In addition, the adjusted indicator significantly exceeded analysts' forecasts.
The long-awaited results of the meeting of the US Federal Reserve System are still in the focus of attention of stock market participants this week. Experts expect that on Wednesday the regulator will approve plans to reduce the $120 billion bond purchase program adopted to support the economy during the coronavirus pandemic. In addition, traders are waiting for comments from the Federal Reserve regarding interest rates and the duration of the current surge in inflation.
