Stock market news live updates: Stocks turned mixed, losing steam after surprise jump in retail sales
An early rally ended on Friday, but the S&P 500 and Dow still closed higher as the markets recouped some of the losses of the past three days.
During the session, investors watched bullish announcements from big companies like Boeing and Pfizer, as well as much better-than-expected pressures on US consumer spending.
US retail sales rose 1.9% in September versus August, beating estimates of 0.8% growth, according to Bloomberg data. Apparel store spending rose 11% for the month, but remained below the level seen in September last year. Sales in department stores, auto dealerships, and sports stores also contributed to the fifth straight monthly profit.
The positive surprise in consumer spending - the largest contributor to US activity - helped offset concerns about the pace of recovery in manufacturing. US industrial production unexpectedly fell for the first time in five months in September, new data from the Federal Reserve showed.
Meanwhile, shares in the Dow component Boeing (BA) rose more than 2.5% after European aviation authority EASA suggested that the 737 Max could safely fly in the region again before the end of the calendar year, according to a Bloomberg interview with the director of the agency. The 737 Max has been on the ground since March 2019 after two fatal accidents worldwide.
Pfizer (PFE), meanwhile, announced in an update on Friday that it is expected to hit a major milestone in its COVID-19 vaccine candidate testing in the third week of November. After that, it planned to apply for the use of emergency permits through the U.S. Food and Drug Administration for drug delivery. Investors welcomed the news by sending the stock up more than 1%.
The positive corporate news helped dispel the dire prospect of fiscal stimulus for Washington Senate majority leader Mitch McConnell - or less than a quarter the size of the House Democrats' proposal earlier this month.
For his part, President Donald Trump suggested in an interview with Fox Business that he was ready to go higher than the $ 1.8 trillion package he last proposed. However, the ongoing discussions between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have seen little tangible progress in narrowing the differences between the warring D.C. brought.
4:00 p.m. ET: stocks will end mixed as the rally subsides
Here were the main movements in the stock markets from 4:00 p.m. ET:
S & P 500 (^ GSPC): +0.57 points (+ 0.02%) to 3,483.91
Dow (^ DJI): +112.57 points (+ 0.4%) to 28,606.77
Nasdaq (^ IXIC): -42.31 points (-0.36%) to 11,671.56
2:39 p.m. ET: Stocks hold up for the day, Dow adding more than 250 points
The three major indices held higher in intraday trading on Friday, driven by a jump in the healthcare, utilities and industrial sectors in the S&P 500. Caterpillar and Boeing stocks performed better on the Dow.
In less than 90 minutes on the trading day, the S&P 500 gained more than 0.6%. The Dow rose nearly 1%, or 270 points, and the Nasdaq rose 0.41%, or 48 points.
10:05 am ET: Consumer sentiment improves slightly in October but remains below pre-virus levels: U. Michigan
The University of Michigan's closely watched consumer sentiment index rose slightly in October versus September but remained well below pre-pandemic levels.
The headline index rose to 81.2 in October, after rising to 80.4 in September, according to a preliminary monthly reading. While the sub-index that tracks consumer expectations for the future improved from 75.6 to 78.8, an index that tracks consumer sentiments about current conditions fell from 87.8 to 84.9.
The consumer sentiment index was 101.0 in February before the pandemic.
"The slowdown in employment growth, the resurgence of COVID-19 infections, and the lack of additional federal aid made consumers more concerned about current economic conditions," said Richard Curtin, chief economist for Surveys of Consumers, in a statement. "These concerns were largely offset by continued poor gains in the economic outlook for the coming year."
9:32 a.m. ET: stocks open higher after retail sales hit highest expectations
Here were the key moves in the markets as of 9:32 a.m. CET:
S & P 500 (^ GSPC): +13.74 points (+ 0.39%) to 3,497.08
Dow (^ DJI): +161.03 points (+ 0.57%) to 28,655.23
Nasdaq (^ IXIC): +47.53 points (+ 0.41%) to 11,762.70
Crude Oil (CL = F): - $ 0.53 (-1.29%) to $ 40.43 per barrel
Gold (GC = F): + $ 1.80 (+ 0.09%) to $ 1,910.70 per ounce
10 year Treasury (^ TNX): -0.2 basis points for a return of 0.732%
8:35 a.m. ET: Industrial production unexpectedly declines for the first time in 5 months in September
US industrial production fell 0.6% in September to end a four-month winning streak, according to Federal Reserve data on Friday. The decline resulted in U.S. factories production being more than 7% below pre-pandemic levels as of February.
Capacity utilization, which measures the percentage of assets, mines and utilities used during a period, fell to 70.5% in September, a pressure more than 5 percentage points below the February level before widespread business and factory shutdowns took place. The occupancy rate in August was 72.0%.
8:30 a.m. ET: Retail sales are rising far more than expected in September
Sales at US retailers accelerated far more than expected in September, driven by a rebound in clothing store sales.
Retail sales rose 1.9% in September compared to August, after increasing 0.6% in the previous month, the trading division said on Friday. Consensus economists had targeted a 0.8% increase, according to Bloomberg consensus data.
Excluding auto and gas sales, retail sales still rose 1.5%, or three times the expected 0.5% increase. The increase was due to an 11.0% jump in sales in apparel and apparel accessory stores that had previously lagged during the pandemic. Department store sales also rose 9.7% and sports and hobby store sales rose 5.7% in September.
The only major category to see a decline in September were electronics and home appliances stores, with sales down 1.6%.
7:24 a.m. ET Friday: Stock futures move higher after bullish news from Boeing and Pfizer
Here were the key moves in the markets as of 7:24 a.m. CET:
S&P 500 Futures (ES = F): 3,479.25, plus 3.75 points or 0.11%
Dow Futures (YM = F): 28,430.00, plus 44 points or 0.16%
Nasdaq Futures (NQ = F): 11,894.75, plus 20.75 points or 0.17%
Crude Oil (CL = F): - $ 0.46 (-1.12%) to $ 40.50 per barrel
Gold (GC = F): + $ 3.70 (+ 0.19%) to $ 1,912.60 per ounce
10-year Treasury (^ TNX): -0.7 basis points for a return of 0.727%
6:09 p.m. ET Thursday: Stock futures open a little higher
Here were the key moves in the stock markets from 6:09 p.m. ET:
S&P 500 Futures (ES = F): 3,478.00, plus 2.5 points or 0.07%
Dow Futures (YM = F): 28,401.00, plus 15 points or 0.05%
Nasdaq Futures (NQ = F): 11,896.25, up 22.25 points or 0.19%
People walk past the New York Stock Exchange (NYSE) in Lower Manhattan on October 5, 2020 in New York City. Stock markets rallied on reports that Donald Trump's health had improved after testing positive for the coronavirus. Traders were also pleased to see signs that US lawmakers were moving towards an agreement on a new stimulus package. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS / AFP via Getty Images)
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ES = F.
YM = F.
NQ = F.
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