Wall Street maintained the hot streak and had its best week since June.

source: www.bullfrag.com

New York Stock Market Leading Indicators Finished Green After Encouraging Reports On The Economy, And Corporate Earnings Reassured Investors After A Few Weeks Of Instability.

Stocks ended higher again on Friday, as encouraging reports on the economy and corporate earnings helped Wall Street take hold after a few weeks of instability.

According to preliminary data, Dow Jones gained 1.09% to 35,294.76 points. Thus, the index passed 35,000 points for the first time in a month and a half. On its side, the technological Nasdaq advanced 0.50% to 14,897.34 units, and the expanded S&P 500 index gained 0.75% to 4,471.37.

The S&P 500 was led by freight forwarding company JB Hunt Transport Services, which rose 9 percent after Wall Street posted higher-than-expected profits over the summer. Goldman Sachs rose 3.3% and Prologis 0.4% on better-than-expected earnings reports. In comparison, Alcoa surged 15.6% after exceeding earnings expectations and announcing a dividend payment and the repurchase of their shares.

This data is consistent with a report showing that people spent much more in US retail stores last month than Wall Street expected. Sales in stores, restaurants and other retail establishments increased 0.7% compared to August, instead of falling, as predicted by economists.

Friday's rise adds to Thursday's rise when the S&P 500 rose 1.7%, its best day since March, fueled by stronger-than-expected earnings reports and encouraging labor market data.

This is a change of course from a few weeks of instability, in which the S&P 500 fell as much as 5.2% from its record of September 2. Then, concerns about persistently high inflation reduced market support from the Federal Reserve, and the slowdown in the economy all helped drive equity prices down.

The season for presenting results has just begun, but the first signs are encouraging. All but one of the 19 S&P 500 companies that posted quarterly results beat analyst earnings forecasts this week. This strength is crucial after rising interest rates raised concerns that equity prices had become too expensive relative to earnings.

Stronger-than-expected economic reports also help break the stalemate, a terrible combination of a stable economy and high inflation.

Of course, not everything is clear yet. For example, a report on Friday showing consumer sentiment was weaker than expected amid inflation concerns. Still, stocks of companies whose earnings are most tied to the economy's strength, including retailers, automakers, and travel-related companies, led the gains on Friday.

Aside from finance companies, which benefited from better-than-expected earnings reports from several big-name banks, industrial companies and power producers were also the strongest.

Johnson & Johnson rose after a Food and Drug Administration (FDA) panel approved booster doses of the company's single-dose COVID-19 vaccine. Friday, the panel said that the booster dose should be offered at least two months after immunization but did not suggest a specific time.

Treasury yields also rose after the retail sales report, much stronger than expected. As a result, the work on the 10-year note rose to 1.57% from 1.52% on Thursday.

Rising Treasury yields in recent weeks have held back tech and other high-growth stocks. When bonds pay more interest, investors are less willing to wait that long for earnings growth expectations or pay such high prices for them.

Stock markets in other countries also posted gains. In Europe, the German DAX gained 0.8% and the French CAC 40 0.6%. London's FTSE 100 was up 0.4%. Tokyo's Nikkei 225 added 1.8% in Asia, Hong Kong's Hang Seng rose 1.5%, and Seoul's Kospi advanced 0.9%.

The benchmark US oil price rose 1.2% to $ 82.28 a barrel, continuing a decisive run that has seen it grow more than 70% this year and stoking concerns about high inflation. The world benchmark for crude rose 1%, although the price of US natural gas fell 4.9%.