Equities hovered near record levels, with the S&P 500 set for its sixth consecutive week of gains. Big tech outperformed on Friday, buoyed by solid earnings from Netflix Inc., which drove the shares up 10%. Apple Inc. rallied on news iPhone 16 sales in China surged 20% in their first three weeks compared with the previous model.
The bulk of the growth in S&P 500 earnings continues to come from tech megacaps, with the “Magnificent Seven” expected to show an 18% rise in profits in the third quarter, according to Bloomberg Intelligence. While the rest of the index’s firms are seen posting an only 1.8% rise in earnings, their results are projected to accelerate substantially from here — with double-digit gains anticipated in the first quarter of 2025. “The sustainability of the equity bull market is improving,” says David Donabedian at CIBC Private Wealth US. “Just look at the fundamentals. Third-quarter earnings are solid. Economic data continues to point towards growth. This week retail sales were above expectation, telling us consumers are still spending. And positive market performance is broadening out.”
The S&P 500 rose 0.2%. The Nasdaq 100 climbed 0.7%. The Dow Jones Industrial Average fell 0.3%.
Treasury 10-year yields declined two basis points to 4.07%. The Bloomberg Dollar Spot Index fell 0.3%. Oil fell as the US revived a push to end the conflict in the Middle East and China’s crude demand slipped.
Corporate Highlights:
American Express Co. fell after the firm trimmed its full-year revenue forecast as it awaits signs of economic improvement that will fuel further consumer spending.
Procter & Gamble Co. posted a second straight quarter of sluggish sales growth, dragged down by minimal price increases and weakness in key areas such as skin and baby care.
SLB warned oil explorers’ spending growth has waned in recent months as they take a cautious approach amid lower crude prices.
Procter & Gamble Co. posted a second straight quarter of sluggish sales growth, dragged down by minimal price increases and weakness in key areas such as skin and baby care.
Ally Financial Inc. dropped after the auto lender gave a more pessimistic outlook for loan charge-offs and lowered its net interest margin forecast as consumers struggle with expensive debts.
Verizon Communications Inc. will buy some of US Cellular Corp.’s spectrum licenses for $1 billion as the tower operator sheds parts of its portfolio.
CVS Health Corp. named David Joyner as its new chief executive officer, ending a tumultuous tenure for Karen Lynch at the pharmacy giant.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.2% as of 10:29 a.m. New York time
The Nasdaq 100 rose 0.7%
The Dow Jones Industrial Average fell 0.3%
The Stoxx Europe 600 was little changed
The MSCI World Index rose 0.2%
Bloomberg Magnificent 7 Total Return Index rose 0.5%
The Russell 2000 Index was little changed
Currencies
The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.3% to $1.0861
The British pound rose 0.3% to $1.3045
The Japanese yen rose 0.3% to 149.73 per dollar
Cryptocurrencies
Bitcoin rose 1.9% to $68,197.1
Ether rose 1.2% to $2,628.77
Bonds
The yield on 10-year Treasuries declined two basis points to 4.07%
Germany’s 10-year yield declined two basis points to 2.19%
Britain’s 10-year yield declined two basis points to 4.07%
Commodities
West Texas Intermediate crude fell 2.4% to $68.97 a barrel
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