US Stock Markets Ended Nov. 5, 2021
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The S&P 500 Index returned 2.03% last week after closing Friday at all-time highs. Equities rallied on positive economic data and strong corporate earnings. The reopen trade rallied Friday after Pfizer Inc. announced results on a new therapeutic for COVID-19, which reduced hospitalizations and deaths by 89% for unvaccinated patients. They planned on submitting Bourla for FDA authorization by Thanksgiving lifting their stock 10.86% on Friday. Predictably this sent other COVID vaccine and treatment names down as Moderna Inc. returned -16.56%, Merck & Co. Inc. -9.86% and Johnson & Johnson -0.71%. Reopen names that rallied Friday were Expedia Group Inc. returning 15.63%, Live Nation Inc. 15.14%, Royal Caribbean Cruise LTD 8.95% and United Airlines Inc. 7.26%. Last week earnings season reached full tilt after 183 names in the S&P 500 announced quarterly results. QUALCOMM Inc. returned 22.54% after they announced earnings and revenue above expectations and boosted guidance for next quarter. Their positive outlook has been fueled by greater access to chip supply, giving the general market hope that the semiconductor crunch might be easing. Networking solutions company Arista Networks Inc. rallied 29.50% after announcing strong revenue and earnings along with a large stock buyback. They expressed that visibility has improved in their supply of chips and they increased their guidance moving forward. Not all earnings announcements were positive. Popular video game company Activision Blizzard Inc. fell 13.25% after announcing earnings and revenue inline with expectations but revealed that they would delay releasing Diablo IV and Overwatch 2 because of talent retention issues. Peloton Interactive Inc. fell 35.35% on Friday after announced earnings and revenue that missed earnings and slashed their expectations going forward because they had underestimated the impact of reopening on their business. Looking ahead to next week earnings season is winding down as 20 names in the S&P 500 are expected to report. Notable names expected to report include Berkshire Hathaway Inc., The Walt Disney Co., PayPal Inc., Johnson Controls Holdings.
Posted on Monday, November 8, 2021 @ 8:19 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.