(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
* IBM tumbles after missing quarterly revenue estimates
* Tesla reverses course, trades higher after Q3 report
* Indexes: Dow down 0.31%, S&P off 0.05%, Nasdaq up 0.26%
Oct 21 (Reuters) - The Dow on Thursday eased from a record
high hit in the previous session as IBM shares fell after its
quarterly report, with the potential impact of supply chain
disruptions and labor shortages on profits taking the center
stage this earnings season.
The benchmark S&P 500 index edged lower, but was just
about 10 points short of its early September record, while the
Nasdaq drew support from a rise in mega-cap growth
"Stocks are climbing to new highs and anytime the market is
trading at or near its all-time high, it is not unusual to see a
little bit of more intraday volatility...and it should not
concern investors," said Tom Mantione, managing director, UBS
Private Wealth Management in Stamford, Connecticut.
Six of the 11 major S&P 500 sectors were trading lower, with
energy stocks falling the most.
IBM tumbled 8.2% after it missed market estimates
for quarterly revenue as its managed infrastructure business
suffered from a decline in orders.
Investors are keeping a close eye on growth outlook from
companies facing rising costs, labor shortages and supply chain
constraints, with analysts expecting profit of S&P 500 companies
to rise 33.7% from a year earlier, according to Refinitiv data.
"They (supply chain constraints) definitely are a concern.
Things like semiconductor chips in particular have held back the
economy to some degree and have put some upward pressure on
inflation," said Jon Adams, senior investment strategist for BMO
Global Asset Management.
Tesla Inc erased early declines to rise 3.0% as
investors digested the EV maker's upbeat earnings, despite the
company warning of supply-chain hurdles.
Other growth stocks including Facebook Inc, Microsoft
Corp and Amazon.com Inc were higher by early
Data showed the number of Americans filing new claims for
unemployment benefits dropped to a 19-month low last week,
pointing to a tightening labor market, though a shortage of
workers could keep the pace of hiring moderate in October.
At 12:00 p.m. ET, the Dow Jones Industrial Average
was down 111.47 points, or 0.31%, at 35,497.87, the S&P 500
was down 2.15 points, or 0.05%, at 4,534.04 and the
Nasdaq Composite was up 38.84 points, or 0.26%, at
American Airlines rose 1.2% after posting a
smaller-than-expected quarterly loss, while Southwest Airlines
Co fell 1.5% after it said it expected current quarter
profits to remain elusive.
HP Inc gained 5.9% as brokerages raised their price
targets on the stock after the personal computer and printer
maker forecast upbeat fiscal 2022 adjusted profit and raised its
Declining issues outnumbered advancers for a 1.60-to-1 ratio
on the NYSE and for a 1.22-to-1 ratio on the Nasdaq.
The S&P index recorded 48 new 52-week highs and no new low,
while the Nasdaq recorded 84 new highs and 24 new lows.
(Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru;
Editing by Arun Koyyur)