Wall Street gains on vaccine news, retail sales surprise
By Stephen Culp NEW YORK (Reuters) - U.S. stocks advanced on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and upbeat retail sales data and brought buyers back to the market.
By Stephen Culp
NEW YORK (Reuters) - U.S. stocks advanced on Friday as further clarity regarding the timeline for the development of a coronavirus vaccine and upbeat retail sales data and brought buyers back to the market.
All three indexes were on track to snap a three-day losing streak driven by halted vaccine trials and protracted pandemic relief talks in Washington.
Still, they all looked set to post gains on the week.
"This was a strong showing by the consumer," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "Even though we still have high unemployment, the consumer hasn't changed his spending habits yet."
On that front, U.S. Treasury Secretary Steven Mnuchin told House Speaker Nancy Pelosi that President Donald Trump would "weigh in" with Senate Majority Leader Mitch McConnell if an agreement is reached on a new pandemic relief package. House Republican leader Kevin McCarthy, however, said he does not expect an agreement to be reached ahead of the Nov. 3 election as long as Pelosi is involved.
"Investors are still very much concerned about the uncertainties around the stimulus talks," said Cardillo. "We could see something before the election but whoever wins the election will probably give us a bigger stimulus package which is desperately needed."
The Dow Jones Industrial Average <.DJI> rose 247.49 points, or 0.87%, to 28,741.69, the S&P 500 <.SPX> gained 19.21 points, or 0.55%, to 3,502.55 and the Nasdaq Composite <.IXIC> added 41.18 points, or 0.35%, to 11,755.05.
Of the 11 major sectors in the S&P 500, all but energy <.SPNY> were in the black.
Third-quarter reporting season burst from the starting gate this week, with 49 of the companies in the S&P 500 having reported. Of those, 86% have cleared the low bar set by expectations, according to Refinitiv.
Analysts now see S&P 500 earnings for the July to September period dropping, in aggregate, by 18.7% year-on-year, an improvement from the 21.4% plunge estimated at the beginning of the month, per Refinitiv.
Oil services company Schlumberger NV
Railroad operator Kansas City Southern
The Dow Jones Transport index <.DJT>, considered a barometer of economic health, fell 0.8%.
Shares of fitness company Peloton Interactive Inc
Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.37-to-1 ratio favored advancers.
The S&P 500 posted 50 new 52-week highs and no new lows; the Nasdaq Composite recorded 91 new highs and 15 new lows.
(Reporting by Stephen Culp; Editing by Marguerita Choy)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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