Stocks advanced to another record as solid corporate earnings overshadowed disappointing manufacturing data.

The S&P 500 rebounded from earlier losses, led by gains in energy and consumer-discretionary firms. The Dow Jones Industrial Average touched the 36,000 level for the first time. A gauge of small caps climbed 2.7%. A group of retail-trader favorites like GameStop Corp. and AMC Entertainment Holdings Inc. had its best day since late August.

More than 80% of companies in the S&P 500 reporting third-quarter results have topped Wall Street estimates. That has laid the groundwork for a rally in stocks since the earnings season began. Meanwhile, data showed persistent supply-chain challenges weighed on manufacturers in October. Fed officials meet this week as investors fret the economy is facing the most-widespread supply crunch since the oil crisis of 1973.

“There’s no shortage of things to worry about,” said Evan Brown, head of asset allocation at UBS Asset Management. “I would just say that stocks climb the wall of worry. We do anticipate more of a rotation as people gain more faith that the economy is on sounder footing. We should see rebalancing from growth stocks into value stocks.”

For Morgan Stanley strategist Michael Wilson, the bullish trend for equities may continue into the Thanksgiving holiday later this month, but “not much longer” as the Fed is expected to start tapering and earnings growth will slow further into next year.

Some other corporate highlights:

• Electric-vehicle giant Tesla Inc. jumped amid a lithium supply deal and the start of the COP26 climate summit.
• Zillow Group Inc. is looking to sell about 7,000 homes for $2.8 billion, according to people familiar with the matter.
• Moderna Inc. slumped after its Covid-19 shot failed to secure U.S. regulatory authorization in teenagers.