10-5-17 10:45 AM EDT | Email Article

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica

Constellation Brands rises after earnings, outlook

U.S. stock indexes rose to another round of all-time highs Thursday, though moves were slight as investors extended a trend of scooping up risk assets ahead of an closely followed labor-market report due Friday.

What are stock benchmarks doing?

The Dow Jones Industrial Average rose 36 points, or 0.2%, to 22,698. The S&P 500 index rose 6 points to 2,544 a rise of about 0.2%. The Nasdaq Composite Index was up 20 points, or 0.3%, to 6,555. All three indexes inches up to intraday records and were on track to end at fresh closing records.

What could drive markets?

In the latest economic data, initial jobless claims fell by 12,000 (http://www.marketwatch.com/story/jobless-claims-drop-12000-to-260000-as-disruptions-from-hurricanes-ease-2017-10-05) (http://www.marketwatch.com/story/jobless-claims-drop-12000-to-260000-as-disruptions-from-hurricanes-ease-2017-10-05) in the latest week. Separately, the U.S. trade deficit declined (http://www.marketwatch.com/story/us-trade-deficit-falls-to-11-month-low-2017-10-05) to its lowest level in 11 months.

Several Federal Reserve officials will make appearances on Thursday. Fed Gov. Jerome Powell was scheduled to deliver a speech at the New York Fed on bond market regulation at 9:10 a.m. Eastern. Powell is among leading candidates to replace Janet Yellen (http://www.marketwatch.com/story/jerome-powell-in-the-running-for-top-fed-spot-echoes-one-of-trumps-favorite-economic-themes-2017-10-03) as Fed chief when her term at the helm expires in February.

See:Stock market in wait-and-see mode as Trump mulls Fed chair nominee (http://www.marketwatch.com/story/stock-market-in-wait-and-see-mode-as-trump-mulls-fed-chair-nominee-2017-10-04)

Philadelphia Fed President Patrick Harker was set to speak at a Fed conference in Austin at 9:30 a.m. Eastern. Kansas City Fed President Esther George will speak at that same conference on 'job polarization and the U.S. labor market at that same conference at 4:30 p.m. Eastern.

What are strategists saying?

-- "The path of least resistance for markets seems to be higher. Revisions on the earnings front have been positive, the global growth theme is continuing, and I think valuations are fine, given where we are in terms of inflation," said Aaron Clark, portfolio manager at GW&K Investment Management. "There are no classic signs of exuberance that would derail the market's trajectory, and I wouldn't be surprised to see multiples and earnings go higher, absent some crazy macro shock that no one can forecast."

See:Some investors see signs stock market 'on verge' of a melt-up (http://www.marketwatch.com/story/why-stocks-may-be-on-verge-of-a-melt-up-2017-10-04)

-- "With the dollar index at near two-month highs, it looks like the market is prepared to believe that the [Fed] committee remains committed to higher rates, even if they think current forecasts are a bit on the hawkish side," said Chris Beauchamp, chief market analyst at IG. Beauchmap said sharp gains for the Institute for Supply Management's manufacturing (http://www.marketwatch.com/story/key-yardstick-of-us-manufacturers-touches-highest-level-since-2004-ism-finds-2017-10-02) and services (http://www.marketwatch.com/story/key-yardstick-of-us-manufacturers-touches-highest-level-since-2004-ism-finds-2017-10-02) indexes released this week may draw comment from Fed's Powell and Harker. Both sets of data provide rationale for further U.S. rate increases. Details on the Fed's balance-sheet unwind may also be offer, he said.

Which stocks are in focus?

United Parcel Service Inc. (UPS) fell 1.3% while FedEx Corp. (FDX) was down 0.6% after Bloomberg reported that Amazon.com Inc.(AMZN) was testing a new delivery service (http://www.marketwatch.com/story/ups-fedex-stocks-fall-after-report-of-amazon-testing-new-delivery-service-2017-10-05)that could pose a competitive threat to the package shipping companies. Amazon was up 0.6%.

"These could continue to be volatile as investors worry whether they're the latest in a string of Amazon roadkill," Clark said.

SeaWorld Entertainment Inc.(SEAS) fell 2.4%, erasing a premarket gain that came on news Legoland parent Merlin Entertainments Inc.(MERL.LN) might buy part of the troubled water park operator (http://www.marketwatch.com/story/seaworld-surges-on-reports-of-possible-deal-with-legoland-owner-2017-10-05).

(http://www.marketwatch.com/story/seaworld-surges-on-reports-of-possible-deal-with-legoland-owner-2017-10-05)Corona-parent Constellation Brands Inc. (STZ) gained 4.3% after it reported second-quarter earnings that beat expectations and raised its outlook (http://www.marketwatch.com/story/constellation-brands-stock-jumps-after-profit-beat-raised-outlook-2017-10-05).

What are other assets doing?

European stocks traded mixed (http://www.marketwatch.com/story/european-stocks-trade-mixed-as-investors-absorb-catalonia-developments-2017-10-05), while Spanish stocks rebounded after posting the biggest loss in 15 months on Wednesday. Spanish assets have been battered in recent days in the fallout from an independence vote from the Catalan region that turned violent.

Read:Catalonia's secession from Spain may come as soon as Monday (http://www.marketwatch.com/story/catalonias-secession-from-spain-may-come-as-soon-as-monday-2017-10-04)

Asian markets traded mostly positive (http://www.marketwatch.com/story/nikkei-swings-to-slight-gains-as-other-asian-markets-rise-2017-10-04), though several markets were shut for holidays.

Oil futures (http://www.marketwatch.com/story/oil-prices-stabilize-after-us-production-hits-july-2015-highs-2017-10-05) rose, the ICE U.S. Dollar Index (http://www.marketwatch.com/story/dollar-higher-against-european-currencies-including-significant-move-against-pound-2017-10-05) added to its two-month high at 93.77, and gold futures (http://www.marketwatch.com/story/gold-tips-higher-aims-for-second-consecutive-gain-2017-10-05) traded little changed.

 

(END) Dow Jones Newswires

October 05, 2017 10:45 ET (14:45 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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