The stock market was rising as earnings continue rolling in and retail sales data beat expectations.
Shortly after the open, the
Dow Jones Industrial Average
was up 209 points, or 0.6%, one day after the benchmark climbed 534 points. The
advanced 0.4% and 0.2%, respectively.
“Futures are modestly higher mostly on momentum from Thursday’s earnings driven rally,” wrote Tom Essaye, founder of Sevens Report Research.
Companies on the S&P 500 have been beating earnings estimates by a decent clip this earnings season. Third-quarter earnings had been coming in at about 14% higher than expectations by Friday morning. Those beats have been driven by impressive profits from banks, which have benefited from higher bond yields and the release of billions of dollars that were previously reserved to absorb potential loan losses. Bank executives say the U.S. economy is back on its feet and that borrowers have improving credit.
Still, the majority of S&P 500 companies have not reported earnings yet. And supply chain constraints, higher product costs, and rising wages are likely to have pressured sales volumes and profit margins. That means investors should pay close attention to industrials like
(ticker: HON) and consumer-staples stocks like
Procter & Gamble
(PG) for information on those pressure when they report next week.
The S&P 500’s rally is broadening out. The index’s gain on Thursday was its largest since March 5 and the number of stocks that participated was the highest since June 21, according to Instinet.
Meanwhile, retail sales for September rose 0.7% month-over-month, better than expectations for a 0.2% decline. August retail sales were revised higher to a gain of 0.9%. The year-over-year increase for September was 14%.
rose 1.8% and the pan-European
was 0.5% higher.
The price of
was up around 3% and trading near the $60,000 mark. Optimism surged following a report from Bloomberg that the first exchange-traded fund tracking regulated Bitcoin futures would soon be approved by the Securities and Exchange Commission—a landmark moment for the crypto industry.
Here are six stocks on the move…