Dow Survives Late Selling to Eke Out Third Weekly Gain

Dow Survives Late Selling to Eke Out Third Weekly Gain

Investing.com  | Oct 16, 2020 21:07

Dow Survives Late Selling to Eke Out Third Weekly Gain

By Yasin Ebrahim

Investing.com – The Dow eked out a third straight weekly win Friday, despite selling into the close as investors weighed up stronger retail sales data that pointed to underlying strength in the U.S. consumer against cooling hopes for a quick roll out of stimulus. 

The Dow Jones Industrial Average rose 0.39%, or 112 points. The S&P 500 was down 0.08%, while the Nasdaq Composite fell 0.36%.

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 and Biontech Se (NASDAQ:BNTX) both added nearly 4%.

The news helped restore some optimism over a Covid-19 vaccine after both Eli Lilly and Company (NYSE:LLY) and Johnson & Johnson (NYSE:JNJ) announced setbacks earlier this week.

Tech, however, lagged the broader move higher even as the Fab 5 stocks closed mostly in the red, despite trading higher intraday.

Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), Microsoft  (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) closed lower, while Google-parent Alphabet (NASDAQ:GOOGL) ended the day above the flatline.

On the earnings front, investors digested mixed results from corporates.

Bank of New York Mellon (NYSE:BK) reported better-than-expected quarterly results on the top and bottom lines, sending its shares up 2%.

Schlumberger NV (NYSE:SLB) fell 9% after it 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 2% after Europe’s aviation regulator said the company’s maligned 737 Max jet was airworthy again.

In deal news, First Citizens BancShares (NASDAQ:FCNCA) said it had agreed a deal to buy CIT Group Inc (NYSE:CIT) to form a new bank with more than $100 billion assets. 

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';