Shares of industrial and transportation companies rose as traders bet the economic recovery would be sustained despite recent wobbles.
U.S. economic growth slowed to a modest to moderate rate this fall as companies grappled with supply-chain problems, a labor shortage and continued fears around the Delta variant of Covid-19, according to the latest "Beige Book" regional survey from the Federal Reserve.
"The Beige Book indicated that employee turnover and inflation are issues across many companies throughout the U.S.," said Chris Zacarelli, chief investment officer of financial-advice network the Independent Advisor Alliance, in a note to clients.
"It also indicated that many of those same companies indicated 'a greater ability to pass along cost increases.'"
Semiconductor shortages currently affecting the global automotive industry should stabilize in the second half of next year, with a full recovery to come by 2023, according to analysts at brokerage RBC Capital Markets.
Aerojet Rocketdyne shares are back around two-month highs, rising after a Boeing executive said the company had no plans to replace the company as a supplier on its Starliner space capsule.
Knight-Swift Transportation rallied after the trucking line's quarterly earnings topped Wall Street forecasts.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-20-21 1724ET
