Stocks Recover from Disastrous Thursday

By Baystreet Market Updates

Stocks rose on Friday amid solid corporate earnings as Wall Street tried to rebound from steep losses in the previous session.

The Dow Jones Industrials spiked 166.38 points to 25,545.83, led by sharp gains in Procter & Gamble.

The S&P 500 regained 21.73 points to 2,790.25, as the consumer staples and technology sectors outperformed.

The NASDAQ re-strengthened 75.07 points, or 1%, to 7,560.21

P&G posted better-than-expected earnings, sending the stock up 7.7%. The company said it got a boost from strong beauty-product sales.

Honeywell and Schlumberger also reported better-than-forecast profits

American Express, PayPal and Skechers all posted on Thursday earnings that topped analyst expectations. AMEX shares rose 2.6%, PayPal was up 9.3% and Skechers 15.4%.

The corporate earnings season is off to a strong start. With more than 15% of S&P 500 companies having reported, 83% have topped analyst expectations

These moves follow a selloff on in the previous session as investors worried about rising rates, geopolitical tensions and a potential slowdown in the global economy. On Thursday, the Dow dropped more than 300 points, following a plunge in Chinese equities. History shows that, when stocks plunge in China, the U.S. market is rarely immune as large exporters suffer.

Overnight, China said its economy grew by 6.5% in the third quarter, missing expectations. Chinese equities surged, however, as officials took steps to support the market, and that was helping sentiment in the U.S.

Despite Friday’s gains, however, stocks remain down sharply for the month. The Dow and S&P 500 have fallen more than 4% each in October, while the NASDAQ is down nearly 7%.

Prices for the benchmark for the 10-year U.S.Treasury lost ground, raising yields to 3.2% from Thursday’s 3.17%. Treasury prices and yields move in opposite directions.

Oil prices gained 94 cents at $69.59U.S. a barrel.

Gold prices recovered 90 cents an ounce to $1,231.

This article provided by NewsEdge.