US close: Markets mixed but Dow hits another record

Wall Street's three main equity indices finished in mixed fashion on Thursday as investors digested a flurry of economic data, but the Dow managed to eke out another all-time high.

Several economic indicators came in better than forecasts during the session, including jobless claims, retail sales, the NAHB housing market index and a gauge of manufacturing activity in the Philadelphia region.

Commenting on the retail sales data specifically, Michael Pearce, deputy chief US economist at Oxford Economics, said: "The ongoing resilience of consumer spending suggests fears over the health of the economy are overdone. We expect layoffs to remain low, helping to keep the unemployment rate close to current levels over the coming months."

The Dow rose 0.37% to settle at a new record of 43,239.05, topping the 43,077.70 peak reached the previous session. However, the S&P 500 and Nasdaq both finished flat.

Economic data barrage

US initial jobless claims fell 19,000 to 241,000 in the week to 12 October, well below market expectations for a reading of 260,000, principally due to disruptions caused by Hurricanes Helene and Milton. Elsewhere, outstanding claims increased by 9,000 to 1.86m, while the four-week moving average, which aims to strip out week-to-week volatility, rose by 4,750 to 236,250.

US retail sales rose 0.4% in September, driven by a broad-based increase across several sectors, following a modest 0.1% increase in August, according to the Commerce Department. Excluding sales at auto dealerships and gasoline stations, retail sales advanced by an even stronger 0.7%.

The Philadelphia Federal Reserve's manufacturing index surged to 10.3 in October, a marked increase when compared to the previous month's reading of 1.7 and significantly ahead of expectations for a print of 3.

US industrial production fell by 0.3% during the month after a 0.3% gain in August, as strikes at Boeing and recent hurricanes held back output. The consensus estimate was for a fall of just 0.2%.

The NAHB's housing market index rose to 43 in October, up from 41 in September and ahead of expectations for a reading of 42 - the highest reading since June. The gauge for current sales conditions rose by two points to 47, while sales expectations in the upcoming six months increased by four points to 57.

Finally, business inventories rose by 0.3% in August, according to the Census Bureau, in line with both the prior month's revised growth rate and market estimates for a fifth consecutive monthly increase in business inventories. Stocks increased 0.1% at manufacturers and merchant wholesalers. On an annualised basis, business inventories grew by 2.4% in August.

Market movers

Chip stocks Nvidia and AMD finished with moderate gains after sector peer Taiwan Semiconductor posted unexpectedly strong third-quarter results. Sentiment in the sector had been dampened in recent days after a cautious outlook from ASML.

Uber fell on rumours it is considering a possible bid for travel booking website operator Expedia, according to the Financial Times. An Expedia takeover would easily mark the ridesharing giant's biggest acquisition to date.

Aluminium manufacturer Alcoa erased early gains to finish firmly in the red despite reporting quarterly adjusted earnings that topped expectations.

Insurance group Travelers surged 9% after third-quarter earnings per share came in 46% higher than the consensus estimate, with premiums and margins rising strongly.

In contrast, health insurer Elevance Health dropped nearly 11% after missing forecasts badly with third-quarter profits, citing "unprecedented challenges" and increased costs in the Medicaid business.

Dow Jones - Risers

Travelers Company Inc. (TRV) $264.82 9.00%
Chevron Corp. (CVX) $151.20 1.66%
American Express Co. (AXP) $285.78 1.46%
Visa Inc. (V) $290.39 1.00%
Intel Corp. (INTC) $22.44 0.58%
McDonald's Corp. (MCD) $314.87 0.57%
JP Morgan Chase & Co. (JPM) $224.58 0.35%
Boeing Co. (BA) $155.31 0.26%
Dow Chemical Co. (DOW) $53.08 0.26%
Caterpillar Inc. (CAT) $394.49 0.22%