US Stocks end mixed global growth, inflation concerns

The US stocks were mixed on Monday, 18 October 2021, with the S&P500 and the Nasdaq settling higher, while the Dow finished modestly lower, due to lingering concerns about global economic outlook after data showed the US industrial production unexpectedly drop in the month of September and Chinese economy hit its slowest pace of growth in a year in the third quarter, while a relentless surge in oil prices fueled concerns about elevated inflation.

At the close of trade, the Dow Jones Industrial Average index declined 36.15 points, or 0.1%, to 35,258.61. The S&P500 index added 15.09 points, or 0.34%, to 4,486.46. The tech-heavy Nasdaq Composite Index advanced 124.47 points, or 0.84%, to 15,021.81.

Total volume turnover on U.S. exchanges stood at 8.12 billion shares. In the NYSE exchange, 1598 issues advanced, 1699 issues declined, and 144 issues closed unchanged. In the NASDAQ, 1997 issues advanced, 2478 issues declined, and 217 issues unchanged.

Total 7 of 11 sectors ended up along with the S&P500 index, with consumer discretionary (up 1.2%) was top gaining sector, followed by information technology (up 0.85%) and communication services (up 0.7%), while utilities (down 0.96%) was worst performing sector, followed by healthcare (down 0.72%) and consumer staples (down 0.47%) sectors.

The Federal Reserve released a report on Monday showing the U.S. industrial production fell 1.3% in September following a revised 0.1% dip in August, as the lingering effects of Hurricane Ida continue to stymie activity. Industrial production covers manufacturing, utilities and mining. Manufacturing output fell 0.7% and Utilities output dropped 3.6% while mining production fell 2.3%.

China's gross domestic product expanded 4.9% on year in the third quarter of 2021, the National Bureau of Statistics said on Monday, down sharply from 7.9% and 18.3% in the preceding two quarters, hurt by power shortages.

Investors are closely eyeing on the companies quarterly results to know how Corporate America mitigates the impact on earnings from supply chain disruptions, labor shortages and higher costs, especially in the wake of rising oil prices. Johnson & Johnson, insurer Travelers, Netflix Inc, Verizon Communications, Baker Hughes Co, Schlumberger NV, Tesla Inc, and Intel Corp are some of the companies set to release quarterly earnings results this week.

Among Indian ADR, Wipro fell 0.3% to $9.88, Dr Reddys Labs dropped 2.06% to $64.65, Tata Motors fell 1.17% to $33.79, and WNS Holdings fell 0.8% to $82.88. ICICI Bank added 2.3% to $19.90, Vedanta gained 12.2% to $20.08, INFOSYS added 1.71% to $23.78, and HDFC Bank rose 0.7% to $76.30.

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