- US stocks rose Friday but the S&P 500 and the Nasdaq Composite remained on course for a weekly loss.
- Shares of investment banks were mixed after Q3 earnings reports.
US stocks rallied Friday after September retail sales missed expectations while investors assessed mixed earnings results from major Wall Street investment banks and the ouster of the UK's finance minister.
Stocks rose after the market's wild upside reversal Thursday. In premarket trading Friday, key indexes darted between small gains and losses as investors had plenty to digest. JPMorgan shares rose after the firm posted a third-quarter earnings beat. CEO Jamie Dimon, meanwhile, sounded off on risks of inflation and rising interest rates. Morgan Stanley fell as investment banking revenue slid by 55%. Wells Fargo rose after quarterly net interest income beat expectations.
Meanwhile, retail sales in September were flat, missing an Econoday consensus estimate of 0.2% growth.
Here's where US indexes stood at the 9:30 a.m. opening bell on Friday:
- S&P 500: 3,690.29, up 0.56%
- Dow Jones Industrial Average: 30,193.22, up 0.51% (154.50 points)
- Nasdaq Composite: 10,735.91, up 0.81%
The "retail sales report showing no change in sales from last month reflects consumers' pull back on spending given ongoing high inflation. Consumers are limiting their own regular spending and seeking out deals and discounts as we head into the expensive holiday season," Claire Tassin, retail and e-commerce analyst at Morning Consult.
Investors have been looking for signs of softening in the US economy that could result in the Federal Reserve signaling it will embark on a less aggressive path in rate hikes to cool inflation.
Also in focus was the UK, with Finance Minister Kwasi Kwarteng fired from the role after his controversial mini-budget roiled financial markets. The UK government was expected to make further changes in its £43 billion tax-cuts and spending plan aimed at stimulating economic growth.
The S&P 500 and the Nasdaq Composite were on course to fall for the week, led by a more than 3% decline for the tech-rich index. The Dow industrials were tilted slightly higher for the week.
Here's what else is happening today:
- 'Dr. Doom' Nouriel Roubini predicts an imminent US recession and more pain for stocks.
- UK Chancellor of the Exchequer Kwasi Kwarteng has been fired from his job as Prime Minister Liz Truss waters down her tax-cutting proposals.
- Russia could still make a profit from its oil exports even if a price cap of $60 a barrel is in place, US Treasury Secretary Janet Yellen said.
- In commodities, bonds, and crypto
- West Texas Intermediate crude lost 1.5% to $87.40 per barrel. Brent crude, the international benchmark, fell 1.7% to $92.74.
- Gold moved 0.6% lower to $1,664 per ounce.
- The 10-year Treasury yield fell 8 basis points to 3.86%.
- Bitcoin rose 1.4% to $19,668.04.