Wall St tracks weekly gains on strong bank earnings and retail sales data


Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, October 12, 2021. REUTERS / Brendan McDermid

  • Airlines and cruise lines jump on easing US travel restrictions
  • Retail sales up 0.7% in September despite shortages
  • Goldman Sachs Advances on Strong Third Quarter Earnings
  • Rising indices: Dow 0.79%, S&P 0.53%, Nasdaq 0.28%

Oct. 15 (Reuters) – US stocks climbed on Friday and major indices were set for weekly gains after Goldman Sachs capped a strong earnings season for big banks, as a surprise surge in retail sales sparked optimism about the economic recovery.

Goldman Sachs (GS.N) gained 2.7% as a record wave of trading activity drove the bank’s quarterly profits up. Read more

Other major lenders, including JPMorgan (JPM.N), Morgan Stanley (MS.N) and Wells Fargo (WFC.N), rose between 0.9% and 6.9%. The banking index (.SPXBK) rose 1.6%, following higher yields on 10-year treasury bills.

Eight of S&P’s top 11 sectors advanced. Financials (.SPSY) and Consumer Discretionary (.SPLCRD) added over 1% to new highs.

The Russell 2000 Small Cap Index (.RUT) rose 0.7% and was set for its best week since late August.

The strong results of large financial institutions diverted attention from concerns about the default of US debt, soaring commodity prices and supply chain disruptions, which had fueled early market volatility. of the month.

“The economy continues to heal from a bad debt standpoint and things like that are an indicator of economic activity, so the banking system is in great shape and it’s a great foundation for the economy.” said Josh Wein, portfolio manager at Hennessy. Funds.

A Commerce Department report showed retail sales surged unexpectedly in September, in part due to higher prices, while a preliminary reading of consumer confidence in October was slightly lower than expected. Read more

“Christmas is really the test of the supply chain. We will see how close the consumer, the supply chain and the job market are to the ground,” Wein said.

As of 11:51 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 274.81 points, or 0.79%, to 35,187.37.

The S&P 500 (.SPX) was up 23.64 points, or 0.53%, to 4,461.90, following its best week since late July, and the Nasdaq Composite (.IXIC) was up 41, 43 points, or 0.28%, at 14,864.86, set for its best weekly performance since late August.

Meanwhile, the White House has announced that it will lift travel restrictions for fully vaccinated foreign nationals effective November 8, at land borders and for air travel. Read more

The S&P 1500 Airlines Index (.SPCOMAIR) jumped 0.9%, while cruise lines Carnival Corp (CCL.N), Royal Carribean (RCL.N) and Norwegian Cruise Line Holdings (NCLH.N) gained between 1.1% and 1.5%.

Moderna Inc (MRNA.O) rose 1.3% after a U.S. FDA panel voted on Thursday to recommend booster shots of its COVID-19 vaccine for Americans aged 65 and older and people at high risk. Read more

Western Digital (WDC.O) slipped 1.1% as Goldman Sachs lowered the storage hardware maker’s inventory to “neutral” from “buy.”

Shares of cryptocurrency and blockchain-related companies Riot Blockchain (RIOT.O), Coinbase Global (COIN.O), MicroStrategy Inc (MSTR.O) and Marathon Digital (MARA.O) rose between 2, 5% and 7.2% as bitcoin hit $ 60,000 for the first time since April. Read more

Rising issues outnumbered declines by a 2.21-to-1 ratio on the NYSE and by a 1.48-to-1 ratio on the Nasdaq.

The S&P Index recorded 51 new 52-week highs and no new lows, while the Nasdaq recorded 108 new highs and 31 new lows.

Report by Devik Jain in Bengaluru and Federica Urso in Gdansk; Editing by Anil D’Silva and Arun Koyyur

Our standards: Thomson Reuters Trust Principles.


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