After moving to the upside early in the session, stocks remain mostly positive in mid-day trading on Friday. With the upward move on the day, the major averages are partly offsetting the weakness seen in the previous session.
In recent trading, the Dow and the S&P 500 have reached new highs for the session. The Dow is up 280.92 points or 1 percent at 29,361.09, the Nasdaq is up 71.57 points or 0.6 percent at 11,781.16 and the S&P 500 is up 31.67 points or 0.9 percent at 3,568.68.
The rebound on Wall Street partly reflects a positive reaction to earnings news from big-name companies like Cisco (CSCO) and Disney (DIS).
Shares of Cisco have surged up by 6.6 percent after the networking giant reported fiscal first quarter results that beat expectations on both the top and bottom lines.
Disney is also posting a notable gain after the entertainment giant reported a much narrower than expected fiscal fourth quarter loss on revenues that exceeded analyst estimates.
Shares of DraftKings (DKNG) have also moved sharply higher after the sports betting company reported better than expected third quarter results and raised its full-year revenue guidance.
On the other hand, shares of Revlon (REV) have come under pressure after the cosmetics maker reported a third straight quarterly loss on a 20 percent drop in revenue.
Traders have largely shrugged off a report from the University of Michigan showing an unexpected decrease in U.S. consumer sentiment in the month of November.
The preliminary report said the consumer sentiment index fell to 77.0 in November after rising to a seven-month high of 81.8 in October. The pullback came as a surprise to economists, who had expected index to inch up to 82.0.
“The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline,” said Surveys of Consumers chief economist Richard Curtin
“Interviews conducted following the election recorded a substantial negative shift in the Expectations Index among Republicans, but recorded no gain among Democrats,” he added. “It is likely that Democrats’ fears about the covid resurgence offset gains in economic expectations.”
The Labor Department released a separate report showing producer prices increased by slightly more than anticipated in the month of October.
The Labor Department said its producer price index for final demand rose by 0.3 percent in October after climbing by 0.4 percent in September. Economists had expected prices to inch up by 0.2 percent.
The bigger than expected increase in producer prices was partly due to a jump in food prices, which surged up by 2.4 percent in October amid a spike in prices for fresh and dry vegetables.
Excluding food and energy prices, core producer prices crept up by 0.1 percent in October after rising by 0.4 percent in September. Core prices were expected to edge up by 0.2 percent.
Airline stocks continue to see substantial strength in mid-day trading, with the NYSE Arca Airline Index soaring by 4.2 percent. The index is rebounding after plunging by 7.4 percent over the two previous sessions.
Significant strength also remains visible among energy stocks, which are regaining ground despite a decrease by the price of crude oil. Crude for December delivery is sliding $0.84 to $40.28 a barrel.
Reflecting the strength in the energy sector, the NYSE Arca Oil Index is up by 3.2 percent, the NYSE Arca Natural Gas Index is up by 2.4 percent and the Philadelphia Oil Service Index is up by 2.2 percent.
Computer hardware stocks have also shown a strong move to the upside on the day, driving the NYSE Arca Computer Hardware Index up by 2.4 percent.
Networking, housing and banking stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index fell by 0.5 percent, while China’s Shanghai Composite Index declined by 0.9 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.’s FTSE 100 Index slipped by 0.4 percent, the German DAX Index and the French CAC 40 Index edged up by 0.2 percent and 0.3 percent, respectively.
In the bond market, treasuries are showing a lack of direction following the notable rebound seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 0.887 percent.
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