US stock indices end mixed as traders weigh retail profits

A shaky day on Wall Street ended Thursday with a mixed close for stock indices, pushing the S&P 500 and Nasdaq to new highs.

The S&P 500 rose 0.3% and the Nasdaq gained 0.5%, enough for the indices to hit new highs after a modest dip the day before. After an up-and-down run this week, the indices are on pace for a weekly gain. The Dow Jones Industrial Average fell 0.2%, its third decline so far this week.

About 67% of companies in the S&P 500 fell, although gains from major tech companies and major retailers helped offset losses in other sectors as investors saw through the latest batch of corporate earnings reports.

Bond yields were slightly lower. The 10-year Treasury yield fell to 1.59% from 1.60% at the end of Wednesday.

All told, the S&P 500 rose 15.87 points to 4,704.54, while the Nasdaq gained 72.14 points to 15,993.71.

The Dow fell 60.10 points to 35,870.95. Shares of small companies also fell. The Russell 2000 Index fell 13.42 points, or 0.6%, to 2,363.59.

US equities have been largely higher since early October as companies reported much stronger gains for the summer than analysts had expected. Nearly every company in the S&P 500 has reported its latest financial results, with aggregate earnings growth of 39%. That beat analysts’ expectations in June for earnings growth of 23% for the quarter.

Investors have now turned much of their attention to the threat of rising inflation. Companies are faced with higher raw material costs and supply chain problems that can depress profits. Consumers have absorbed higher prices so far, but analysts fear they may end up curtailing spending if higher prices persist for too long.

Solid earnings results helped a handful of companies on Thursday.

Nvidia rose 8.3% for biggest gain in the S&P 500 after the maker of graphics chips for gaming and artificial intelligence reported strong third-quarter financial results. Other chip makers also gained ground. Advanced Micro Devices was up 2.4% and Micron Technology was up 2.1%.

Companies that rely on consumer spending on goods and services also performed well after solid earnings reports from retailers. Macys rose 21.2% after the department store chain handily beat Wall Street’s third-quarter earnings forecast. Kohls also reported encouraging gains, up 10.6%.

Financial companies had some of the biggest losses. American Express fell 1.9% and insurer Aflac fell 1.8%.

Producers of consumer goods and industrial companies also fell. Kraft Heinz fell by 3.3% and General Electric by 1.3%.

Investors received a positive update on the closely watched labor market, which is seen as a key factor in the ongoing recovery of the economy.

The Labor Department said the number of Americans filing for unemployment benefits fell to a pandemic low of 268,000 for the seventh week in a row.