Business

US Stock Market Overview - Stock Rise Led by Strong Retail Sales

Share
All three major US stock indexes closed in the red on Oct 13 2020

The Dow Jones and Standard & Poor's indexes each achieved third weekly gains in a row, and the Nasdaq index recorded a series of gains over a period of four weeks.

The S&P 500 posted a nominal gain on Friday as further clarity regarding the timeline for the development of a COVID-19 vaccine and much better-than-expected retail sales data and brought buyers back to the market. The earnings reports saw those focused on trading clocking big gains while retail banks took a hit from the COVID-19 pandemic.

At 8:34 a.m. ET, Dow e-minis were down 341 points, or 1.2% and S&P 500 e-minis were down 44 points, or 1.26%, and Nasdaq 100 e-minis were down 195.5 points, or 1.63%, as high-flying stocks such as Apple Inc and Amazon.com Inc fell 2.2% and 1.9%. The company said the study was paused "out of an abundance of caution". Pfizer's stock increased 3.4%.

US stocks rose at the start of Friday's trade as Wall Street looked to end a three-day drop, after an economic snapshot of consumers' health buoyed investor sentiment.

In the first minutes of trading, the Dow Jones Industrial Average climbed 0.67% to 28,685 while the S&P 500 rose 0.48% to 3,499 and the Nasdaq was up 0.51% at 11,773.

Retail sales in September blew past analyst expectations and consumer sentiment for the current month surprised to the upside, according to two separate economic reports.

The Russell 2000 fell 3.74 points, or 0.2%.

Major equity indexes in the United States opened sharply lower on Thursday as safe-haven flows continue to dominate financial markets.

Spread betting quotes suggest the Dow Jones Industrial Average will open at around 28,537, up 43 points on last night's close.

Third-quarter reporting season burst from the starting gate this week, with 49 of the companies in the S&P 500 having reported.

The tech-laced NASDAQ Composite is slated for a 192 point rise to 11,906. Coronavirus counts are rising at a worrying rate in many countries around the world, a trend that's increasing the urgency behind efforts to develop treatments.

The drugmaker's shares firmed 2.4% as it expects to provide safety data and file for authorization of the vaccine it is developing with Germany's BioNTech SE, as soon as a safety milestone is achieved in the third week of November.

The retail sales report initially juiced shares in retailers and other companies that rely on consumer spending, but most of those gains evaporated by the end of the day.

USA retail sales came in strong than expected as consumers accelerated their buying habits.

"In addition, the preliminary results of the University of Michigan's consumer survey for October will also be worth watching", it added.

Share