Nov 11 (Reuters) – The S&P 500 and Nasdaq rebounded from two days of declines on Thursday as beaten-down chipmakers led gains, but losses in Walt Disney due to slowing subscriber growth in its streaming video service weighed on the Dow.
A record-breaking rally in Wall Street’s main indexes paused earlier this week after recent inflation data suggested the current spike in prices will take longer to cool amid snarled global supply chains.
But Arthur Hogan, chief market strategist at National Securities in New York, said investors were able to look beyond the near term as “we just have more demand than supply.”
“That’s likely a good thing for future growth in earnings,” he said.
The Philadelphia SE Semiconductor index (.SOX) rose 1.6%, rebounding from its worst session in more than six weeks, with Nvidia Corp (NVDA.O) offering the biggest boost after brokerage Susquehanna raised the chipmaker’s price target.
Seven of the 11 major S&P 500 sector indexes were higher, led by economy-focused materials (.SPLRCM) and energy (.SPNY).
“Going into the end of the year and early 2022, I definitely think the cyclical trade continues to show strength. I also really like small caps in this space, especially because of inflationary pressures,” said Liz Young, head of investment strategy at SoFi.
The small-cap Russell 2000 index (.RUT) was 0.9% higher, after falling more than 2% in the previous two sessions.
Walt Disney Co (DIS.N) dropped 7.1% to lead declines among Dow (.DJI) components, as it reported the smallest rise in Disney+ subscriptions since the service’s launch and posted downbeat profit at its theme park division. read more
At 11:51 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 50.47 points, or 0.14%, at 36,029.47, the S&P 500 (.SPX) was up 12.88 points, or 0.28%, at 4,659.59 and the Nasdaq Composite (.IXIC) was up 131.66 points, or 0.84%, at 15,754.37.
Mega-cap technology and communications stocks including Google-owner Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O), Meta Platforms Inc (FB.O), formerly known as Facebook, Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) rose between 0.3% and 0.7%.
Department store stocks rallied after Dillard’s Inc (DDS.N) reported strong quarterly results, pushing up its shares 15.5% to a record high and spurring a 3% jump in the S&P 1500 Department Store index (.SPCOMRETD).
Amazon-backed electric-vehicle maker Rivian Automotive Inc (RIVN.O) surged 22.1%, adding to the nearly 30% gain on its blockbuster trading debut. read more
Industry peers such as Nikola Corporation (NKLA.O), Lordstown Motors…
Read More: S&P 500, Nasdaq rise on chipmaker boost; Disney weighs on Dow