Investing.com | Oct 16, 2020 18:27
By Yasin Ebrahim
Investing.com – The Dow rallied Friday, as stronger retail sales data suggesting the U.S. consumer, the backbone of the economy, remains in good shape helped ease investor worries about a slowdown in the recovery.
The Commerce Department said Friday that retail sales rose 01.5% last month. That confounded economists’ forecast for a 0.5% rise. The retail sales control group – which has a larger impact on U.S. GDP – rose 1.4%, topping expectations for a 0.2% increase.
Some economists, however, warned the data could represent the "last hurrah" for the consumer heading toward the end of the year as income will likely decline amid a lack of stimulus.
"September strength may have been the last hurrah for the consumer this year. With the back to school/work spending likely behind us, and disposable income set to contract sharply in Q3/Q4 without fresh fiscal stimulus, we’ll be lucky if consumption is flat in Q4," Jefferies (NYSE:JEF) said in a note.
Despite little progress on stimulus talks, many believe that it is a matter of when rather than if further federal aid is coming, with House Speaker Nancy Pelosi suggesting earlier this week that a fiscal package will be rolled out before January.
Utilities, industrials, and health care led the broader market higher, with the latter getting a boost from a rise in shares of Regeneron Pharmaceuticals (NASDAQ:REGN) and Pfizer .
Pfizer (NYSE:PFE) said it would apply for emergency U.S. approval of its Covid-19 vaccine it is developing with Germany's BioNTech in the third week of November. Pfizer was up more than 2%, while Biontech Se (NASDAQ:BNTX) was up 3%.
Tech, however, lagged the broader move higher even as the Fab 5 stocks traded mostly higher.
On the earnings front, investors digested mixed corporate reports.
Bank of New York Mellon (NYSE:BK) reported better-than-expected quarterly results on the top and bottom lines, sending its shares up 3%.
Schlumberger NV (NYSE:SLB) fell more than 7% after reported mixed results after its quarterly earnings beat, but revenue fell short of estimates, pressured by coronavirus-led disruptions in its drilling business.
In other news, Boeing (NYSE:BA) climbed 4% after Europe’s aviation regulator said the company’s maligned 737 Max jet was airworthy again.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.