S&P 500 rises 0.40% at midday as factory activity strengthens in October

The S&P 500 stood at 7610.46 at 12:30 New York time on Monday, November 2, up 0.40% from the previous close of 7580.07. The Nasdaq 100 traded at 28437.49, a gain of 0.19%.

What happened

The S&P 500 added 30.39 points from the previous close of 7580.07. The Nasdaq 100 rose 52.64 points from 28384.85. Both indexes traded higher at midday, and the S&P 500 posted the larger percentage gain.

The Institute for Supply Management released its October Manufacturing PMI during the session. The index came in at 55.5, against an estimate of 54.6. The previous reading was 54.5.

Estée Lauder reported results before the market opened. Earnings per share were 0.72 USD, against an estimate of 0.51 USD. Revenue was 3.72 billion USD, against an estimate of 3.65 billion USD.

Why it matters

The manufacturing reading rose from the 54.5 recorded a month earlier. It is a closely followed gauge of factory activity, and it adds to the data that market participants use to judge the state of the US economy. A higher reading at the start of a new month sets a firm tone for the session.

Estée Lauder is a large consumer-products company, and its quarterly figures offer a view of beauty demand. The company's EPS of 0.72 USD and revenue of 3.72 billion USD are the headline numbers from the report. Single-company results like these often move individual shares and can shape sentiment in the consumer sector.

Politics also shaped the backdrop. According to one market report, the US stock market has largely priced in a Democratic win in the House of Representatives. The same report said the market has not reached a decisive view on the Senate. For investors, the midday moves show a market absorbing strong economic data, a company earnings report and election uncertainty at the same time.

What to watch next

Apple is due to report earnings one day before Election Day, according to the same report. That report also said Apple shares were falling ahead of the release, and it pointed to the company's iPhone sales as a focus of the call.

Market participants will also follow how the S&P 500 and the Nasdaq 100 hold their midday moves into the close at 16:00 New York time. Further company reports and the approaching election remain the main scheduled events in the days ahead.