- Stocks reached a new high as strong corporate earnings overshadowed disappointing manufacturing data.
- Treasuries dropped.
- The S&P 500 recovered from earlier losses, with gains led by energy and consumer discretionary companies. For the first time, the Dow Jones Industrial Average crossed the 36,000 mark. A small-cap index rose 2.7%. A group of retail-trader favorites, including Gamestop and AMC Entertainment holdings had their best day since August.
- More than 80% of S&P 500 companies reporting third-quarter results outperformed Wall Street expectations. Since the start of the earnings season, this has laid the groundwork for a stock market rally.
- Meanwhile, data showed that manufacturers faced persistent supply-chain challenges in October. Fed officials will meet this week as investors worry that the economy is facing the most widespread supply crunch since the 1973 oil crisis.
- According to Morgan Stanley strategist Michael Wilson, the bullish trend in equities may continue into the Thanksgiving holiday later this month, but "not for much longer," as the Fed is expected to begin tapering and earnings growth will slow further into next year.
