US STOCKS-S&P 500, Nasdaq resume their advances; Disney drags on Dow

Dillard's

11/11/2021 19:10

* Slowing subscriber growth slams Disney shares
    * Rivian extends gains a day after market debut
    * Upbeat Dillard's report lifts department stores
    * Dow down 0.38%, S&P up 0.18%, Nasdaq rises 0.69%

 (New throughout, changes dateline to NEW YORK, changes byline)
    By Stephen Culp
    Nov 11 (Reuters) - The S&P 500 and the Nasdaq inched higher
on Thursday, with chipmakers helping the indexes resume their
climb after hotter-than-expected inflation reports dampened
investor sentiment and halted a streak of record closing highs. 
    Walt Disney Co  DIS.N , falling in the wake of a
disappointing earnings report, dragged the Dow into the red.
    "We’re seeing a rebound from yesterday’s sell-off, which I
thought was exaggerated," said Oliver Pursche, senior vice
president at Wealthspire Advisors, in New York. 
    "This story has not changed much, we’re going to continue to
make improvements in the economy, to have pretty strong earnings
growth," Pursche added. "Yes, there are going to be
COVID-related headwinds, but those are going to disappear."
    The bond market was closed in observance of Veterans Day,
and in the absence of economic data and with third-quarter
earnings season winding down, there were few catalysts to move
markets in either direction.
    Investors were favoring growth  .IGX  over value  .IVX , and
economically sensitive smallcaps  .RUT  and chips  .SOX  were
outperforming the broader market.
    The Philadelphia SE Semiconductor index  .SOX  gained 1.9%,
bouncing back from its worst session in more than six weeks,
driven by gains in Nvidia Corp  NVDA.O  after brokerage
Susquehanna raised the chipmaker's price target.  urn:newsml:reuters.com:*:nL4N2S23IL
    Market participants were digesting recent inflation data,
which suggested that the current wave of price spikes due to
chronic worldwide supply challenges could have more staying
power than many - including the U.S. Federal Reserve - had
hoped.
    With consumer sentiment data expected tomorrow and a string
of retailers due to report quarterly earnings over the next few
weeks, focus is shifting to consumer spending as the holiday
shopping season approaches.
    The Dow Jones Industrial Average  .DJI  fell 136.4 points,
or 0.38%, to 35,943.54, the S&P 500  .SPX  gained 8.15 points,
or 0.18%, to 4,654.86 and the Nasdaq Composite  .IXIC  added
107.92 points, or 0.69%, to 15,730.63.
    Among the 11 major sectors of the S&P 500, utilities
 .SPLRCU  were down the most, while materials  .SPLRCM  led the
gainers.
    Shares of Walt Disney Co  DIS.N  sank 6.3% and were the
heaviest drag on the Dow following its disappointing earnings
release, in which the media company reported shortfalls in
streaming subscribers and theme park revenues.  urn:newsml:reuters.com:*:nL4N2S14JG
    Electric automaker Rivian Automotive Inc's  RIVN.O  shares
jumped 15.1% a day after closing 29.1% above its offer price in
its debut as a publicly traded company.  urn:newsml:reuters.com:*:nL1N2S21CN
    Rival Lucid Group Inc's shares jumped by 9.6%.
    But Tesla Inc  TSLA.O  slipped 0.8% following news that CEO
Elon Musk sold about $5 billion of the stock in the company over
the last few days, following his infamous Twitter poll on
whether he should shed 10% of his shares in the firm he founded.
 urn:newsml:reuters.com:*:nL4N2S21U7
    Dillard's Inc  DDS.N  surged 11.2% after handily beating
quarterly earnings and revenue forecasts. Fellow department
stores Macy's Inc  M.N , Nordstrom Inc  JWN.N  and Kohl's Corp
 KSS.N , which have yet to report quarterly results, rose
between 1% and 4.5%.
    Luxury fashion accessories firm Tapestry Inc  TPR.  gained
10.2% boosted its annual sales forecast and announced a $1
billion share buyback plan.  urn:newsml:reuters.com:*:nL4N2S22Z6
    Advancing issues outnumbered declining ones on the NYSE by a
1.54-to-1 ratio; on Nasdaq, a 1.53-to-1 ratio favored advancers.
    The S&P 500 posted 12 new 52-week highs and 5 new lows; the
Nasdaq Composite recorded 99 new highs and 112 new lows.  

 (Reporting by Stephen Culp; additional reporting by Devik Jain
and Shreyashi Sanyal in Bengaluru; Editing by Diane Craft)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))