Dow jumps 380 points Friday, posts winning week after strong start to earnings season - Stockxpo - Grow more with Investors, Traders, Analyst and Research

Dow jumps 380 points Friday, posts winning week after strong start to earnings season

U.S. stocks rose Friday as better-than-expected third-quarter earnings reports boosted the Dow Jones Industrial Average to its best weekly performance since June.

The Dow Jones Industrial Average gained 382.2 points, or 1.1%, to 35,294.76. The S&P 500 added 0.8% at 4,471.37 and the Nasdaq Composite rose 0.5% to 14,897.34.

The Dow sat 0.9% below its all-time high. The S&P 500 and Nasdaq Composite were 1.6% and 3.3% off record highs, respectively.

Third-quarter earnings reporting season continued Friday as Goldman Sachs’ results beat significantly on the top and bottom line. The bank stock gained 3.8% and was the top gainer on the Dow.

The stellar report came after earnings beats from other big banks earlier in the week. Financial heavyweights JPMorgan, Bank of America, Morgan Stanley and Citigroup were among the firms topping expectations.

“The banks painted a strong and healthy picture of the US consumer,” noted Edward Moya, senior market analyst at Oanda. “Wall Street can’t turn negative on the economy after seeing reserve releases, moderating trading revenue, mixed loan growth, and a consumer willing to take on debt.”

Retail sales posted a surprise increase in September, rising 0.7%. Economists polled by Dow Jones were expecting a 0.2% decline.

“The inflation environment and concerns about supply chains have not put a strong dent in retail sales,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. “Consumers are acclimating to higher prices. So far that hasn’t resulted in a meaningful fall-off in demand. But this willingness to absorb higher prices is not unlimited.”

Elsewhere, bitcoin crossed the $60,000 level as investors were optimistic about the chance of the U.S. Securities and Exchange Commission approving the first bitcoin futures exchange-traded funds.

The cryptocurrency’s jump added to positive market sentiment, suggesting risk-taking could pick up. Tesla and Coinbase shares rose.

Stock picks and investing trends from CNBC Pro:

So far, 80% of the 41 S&P 500 companies that have reported third-quarter results have topped earnings-per-share expectations, according to FactSet.

Taking into account these results and estimates for those yet to report, the blended third-quarter earnings growth rate for the S&P 500 is 30%, FactSet analysis shows.

Become a smarter investor with CNBC Pro
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. 
Sign up to start a free trial today

Source

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top