4:05pm: US equities end higher on better-than-expected earnings
US stocks closed higher on better-than-expected third-quarter earnings reports from the big banks.
Goldman Sachs (NYSE:GS)’ results beat significantly on the top and bottom line with its stock gaining more than 3% on Friday. It was among the top performers on both the Dow and the S&P 500.
Goldman’s report came after earnings beats from other big banks earlier in the week. Financial heavyweights JPMorgan, Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and Citigroup have topped expectations.
One the day, the Dow Jones Industrial Average increased by 396 points, or 1.14%, to 35,305, while the S&P 500 rose 0.76% to 4,471.
And the tech-heavy Nasdaq climbed 0.49% to 14,897.
12.05 pm: S&P 500 adds to its best session since March
US stocks advanced sharply in noon trading, for a second straight day, following better-than-expected financial results from Goldman Sachs (NYSE:GS) and surprising retail sales gains.
At midday, the Dow climbed 272 points, or 0.8%, to 35,185, while the S&P 500 added 24 points at 4,462 and the tech-heavy Nasdaq rose 38 points to 14,861.
"We've had a lot of volatility recently, and I think markets are looking for any little glimpse or glimmer of good news," JPMorgan Asset Management global market strategist Jack Manley said.
"The earnings season ... has been good so far, and if history suggests anything, it's only going to get better from here," Manley added.
Earlier in the day, the Commerce Department reported that retail sales rose 0.7% in September, surprising economists who were predicting a 0.2% decline.
Notable movers included shares of Amazon.com, Inc, which gained more than 2%.
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10.00am: Consumers give Wall Street a lift
US stocks started strongly on Friday, looking to end a choppy week positively following some resilient retail sales numbers and further corporate earnings news.
After half an hour of trading, the Dow Jones Industrial Average was 307 points, or 0.9% higher at 35,221, while the S&P 500 index gained 0.6%, although the tech-laden Nasdaq Composite only rose 0.2%.
September retail sales rose a seasonally adjusted 0.7% from the previous month, as households shrugged off supply constraints, the Delta variant and the end of enhanced unemployment benefits. August retail sales were revised up to 0.9% from 0.7%.
The rise in sales partly reflects higher consumer prices, which advanced 0.4% in September from August and 5.4% from a year earlier. Retail sales rose 13.9% in September from a year earlier.
In a quick reaction to the numbers, economists at ING said: "A strong performance from retail sales coupled with surging spending on travel and leisure suggests that the economy is re-accelerating after the recent Covid-related slowdown. This should help cement expectations for a November 3rd QE taper announcement from the Federal Reserve."
6.50am: Positive Friday open expected
US stocks look set for modest gains at the open on Friday ending a choppy week positively, as investors await another batch of major corporate earnings.
Futures for the Dow Jones Industrial Average were around 0.3% higher, while those for the broader S&P 500 index also added 0.3%, and tech-focused Nasdaq-100 futures rose 0.2%
The Wall Street indexes notched up strong gaiins on Thursday, with the S&P 500 posting its biggest one-day advance since March fueled by better-than-expected earnings and weekly jobless numbers that helped ease concerns about the economic outlook.
A strong batch of earnings from healthcare companies and banks, including Morgan Stanley and Citigroup, has buoyed the market in recent days. In after-hours trade on Thursday, metals group Alcoa rose after it posted higher than expected third-quarter sales boosted by stronger aluminum prices.
Quarterly reports from Goldman Sachs (NYSE:GS), PNC Financial Services Group and JB Hunt Transport Services are among earnings due before the US market opens. Of the 35 S&P 500 companies that have reported earnings through to Thursday, 80% have beaten analysts’ forecasts, according to FactSet.
However, investors still remain concerned that a steep rise in energy prices will fuel inflation, which may prompt central banks to withdraw stimulus measures faster than expected.
Elsewhere, overnight Bitcoin (BTC) reached $60,000 for the first time since April, following a Bloomberg article reporting that the SEC is likely to approve several BTC futures ETFs which could potentially begin trading next week.
Walid Koudmani, XTB Market analyst commented: "This is a key development for the crypto space as it would allow many investors who were on the fence to enter the market in more traditional ways, thus reassuring them about previously associated risks such as lack of regulations and the possibility of having their wallet hacked.
"While this is another step on the road to normalization of cryptocurrencies in the US, it could have cascading effects as other governments begin to follow and integrate them, which could in turn lead to an even bigger increase in demand."