4:10pm: Stocks surge to close the week
US stocks closed near session highs on Friday.
The Dow age gained nearly 1% to hit a record 44,297 points, the S&P 500 rose 0.4% to close at 5,969 and the Nasdaq increased by 0.2% to end at 19,004.
Despite a slow start to the week, all major indexes posted gains of over 1% for the week.
Investors focused on President-elect Donald Trump's efforts to build his team, including his pick of Pam Bondi for U.S. Attorney General after Matt Gaetz withdrew. Wall Street is awaiting Trump's Treasury secretary appointment, which could significantly impact markets.
3:00pm: Energy stocks find stronger footing
Energy stocks have "finally found some gas," says Adam Turnquist, Chief Technical Strategist for LPL Financial.
Momentum in the sector is gaining traction as the Trump administration signals a commitment to reducing regulations in the oil and gas industry. Additionally, escalating tensions between Russia and Ukraine have reintroduced a geopolitical risk premium in oil, counterbalancing recent reports of higher-than-average stockpile builds.
"Solid fundamentals, including sizable free cash flow generation and healthy balance sheets supported by less debt, have helped limit downside risk — along with companies shifting to more shareholder-friendly policies," Turnquist wrote.
While relative strength and market breadth are showing signs of improvement, it’s still premature to predict a shift toward energy sector leadership, he added.
The ratio chart of the S&P 500 Energy Sector against the S&P 500 has rebounded from its September lows but remains below its declining 200-day moving average and the downtrend line from the 2022 highs.
1:35pm: Existing home sales surprise
Outside of earnings, the residential sector was in focus this week.
"The late summer dip in mortgage rates led to an upside surprise in existing home sales," Wells Fargo analysts noted.
"Recent hurricanes weighed on housing starts in October. An upturn in the NAHB HMI shows builders are not put off by the rebound in financing costs and generally are encouraged by the election results."
12:03pm: Tech stocks face pressure
At noon, the Dow gained 0.7%, the S&P 500 was up 0.2%, and the Nasdaq was flat after mixed market reactions to Nvidia's earnings, which left uncertainty over AI's impact on stock growth.
Some major tech stocks, including Nvidia and Alphabet, faced pressure, partly due to concerns over Alphabet's potential breakup. Nvidia's stock was down more than 3% at the halfway point of Friday's trading, while Alphabet's Class A shares lost nearly 2%, weighing on the Nasdaq.
Despite a slow start to the week, major indexes are set to close with over 1% gains.
In other news, Bitcoin surged toward the $100,000 mark, driven by optimism about pro-crypto policies under the Trump administration and SEC Chair Gary Gensler's upcoming departure.
Tesla's stock jumped 4%, boosting the Consumer Discretionary sector, with shares up about 40% since the presidential election, fueled by expectations of looser regulations for autonomous driving.
11:01am: Dow supported by strong economic indicators
The Dow’s surge is supported by strong performances in industrial and financial sectors and improving economic indicators, despite lingering negative signals, analysts say.
Investors are showing a renewed appetite for risk amid mixed U.S. economic data, according to Rania Gule, Senior Market Analyst at XS.com.
“In my view, the positive readings from unemployment and housing reports provided essential support to the markets, improving the broader growth outlook,” Gule wrote.
Gule pointed to positive unemployment and housing reports as boosting sentiment, with initial jobless claims falling to 213,000, below expectations of 220,000, and existing home sales rising by 3.4% in October after a prior decline. These metrics, Gule says, suggest a resilient labor market and consumer demand, despite pressures from inflation and rising interest rates.
9.47am: Positive start seen on Wall Street
Wall Street built on Thursday’s gains as trading got underway on Friday, placing the Dow Jones, S&P 500 and Nasdaq all on course for a weekly gain.
The Dow Jones ticked up 0.1% as trading got underway, as the S&P 500 added 0.2% and Nasdaq moved just above the mark.
Super Micro Computer Inc was among early risers, jumping 8% and adding to an over 60% gain for the week after enacting plans aimed at bringing it in line with Nasdaq listing requirements.
Vehicle auction firm Copart Inc (NASDAQ:CPRT) surged 7.9% in the meantime following news of expectation-beating revenue in its first quarter in overnight results.
Gap Inc (NYSE:GPS) also climbed on the back of better-than-expected figures, adding 9.4% as trading got underway.
Away from equities, the dollar continued to rack up gains against the euro and pound, having climbed by 0.6% to 0.7989p, on the back of poor economic data across the Atlantic.
8.45am: Gap up nearly a fifth after results impress
Gap Inc (NYSE:GPS) shares headed almost a fifth higher in pre-market trading following better-than-expected post-trading financials on Thursday.
Chief executive Richard Dickson said that Gap’s “brand reinvigoration playbook” was helping to make the company stronger and driving progress to unlock the brand’s “full potential”.
The jeans-and-hoodies retailer last night announced third-quarter fiscal 2024 results, with earnings per share of $0.72 surpassing analyst expectations of $0.58... Read more
Shares surged 19.8% to $26.41 ahead of Friday's open.
6.40am: Stocks seen lower
Wall Street appeared on course to backtrack on Thursday’s gains as Friday’s opening bell approached.
Futures had the Nasdaq down 0.5% ahead of trading, while the S&P 500 and Dow Jones were seen 0.4% and 0.3% lower respectively.
Each had ticked up on Thursday, aided by a lack of any drastic movement in Nvidia Corp shares after earnings earlier in the week.
A quieter Friday was set to bring S&P flash purchasing managers index data and further clarity around the state of the US economy.
Readings for the Eurozone and the UK earlier in the day showed each falling into contraction territory this month, sending the dollar higher against both the euro and pound.
Among companies, Gap Inc (NYSE:GPS) shares were set for a surge after third-quarter figures sent the stock up over 15% in out-of-hours trading.