Stocks extend Friday’s gains and head for a winning week as the Dow rises 700 points

Stocks climbed in brisk trade on Friday as investors weighed higher corporate earnings reports and the outlook for a Federal Reserve rate hike.

The Dow Jones Industrial Average rose 727 points, or 2.4%. The S&P 500 rose 2.3%. The Nasdaq composite rose 2.2%.

Treasury yields fell after a Friday morning high Report from the Wall Street Journal Some central bank officials worry about overdoing big rate hikes. That report also seemed to lift stocks.

Aggressive rate hikes by the Fed have been a major factor in stocks falling into this year’s bear market, and traders continue to raise their estimates of where the Fed will stop.

“We really need a Fed pause. They’re not outright denying future rate hikes, but they’re going to say every meeting is live, and if the data goes our way we’ll have to do a lot more ‘we won’t after the first half of ’23,'” said Barry Bannister, chief equity strategist at Stifel. “Squawk on the Street,” he said.

Despite the bond market’s reversal on Friday, the 10-year Treasury yield is still trading above 4.2%, which was last seen in 2008. However, major stock averages are up more than 4% for the week.

“I think the market was technically a little oversold last weekend. As we’ve seen many times in the past, when things go negative, it becomes a contrarian indicator for a bounce,” Randy said. Frederick is the Managing Director of Trading and Derivatives at the Schwab Center for Financial Research.

“But like all the other bounces we’ve had, it’s not well sustained. … A bounce today doesn’t necessarily mean it’s going to carry over into next week. If it does, I suspect it won’t last more than a day or two,” Frederick added.

Bank stocks were a bright spot on Friday, with Goldman Sachs adding 4.5% and JPMorgan Chase adding 4.7%.

Earnings reports report limited gains to the market. Dow components American Express and Verizon fell 2.8% and 4.4%, respectively, after their quarterly reports. In tech, social media giant Snap fell 31% after reporting quarterly revenue of $1.13 billion, which fell short of expectations.

Leave a Reply

Your email address will not be published.