The Dow Jones Industrial Average rose on Friday, recording its first daily rise in four sessions as traders ended a volatile week in support of strong US consumer data.
The Dow traded 150 points higher, or 0.5%. The S & P 500 rose 0.2% as Amazon stocks fell 1.2%, and the Nasdaq Composite index remained centered on the flat line. The Dow and S & P 500 paced up three times a week in a row, while Nasdaq headed for a four-week streak.
Boeing’s share price rose 2% after the Dow rose and European aviation regulators said Boeing’s 737 Max jet could fly safely again. Meanwhile, Pfizer surged more than 3% after announcing that it would apply for an emergency use of the coronavirus vaccine as soon as it reached a certain safety milestone scheduled for late November.
Healthcare is the S & P 500’s highest performing sector, with a surge of nearly 1.5%. Utilities and industry also increased by more than 1%.
The Commerce Department said Friday that US retail sales surged 1.9% in September, easily surpassing the Dow Jones estimate of 0.7%. Excluding automobiles, sales increased by 1.5%. This is better than the 0.4% estimate.
“The economy continues to show strong pockets, but we need to expand those pockets,” said Quincy Crosby, chief market strategist at Prudential Financial. “For those who are still working, the economy is recovering,” he said.
“The question is, if the initial unemployment claims continue to grow, will we continue to see retail sales go up and startle,” Crosby added.
Wall Street has been out of decline for the third straight day amid uncertainties about further stimulation of the coronavirus and concerns about a worsening pandemic around the world.
Washington lawmakers continued to send mixed signals about progress towards stimulus. Treasury Secretary Steven Mnuchin said Thursday that the White House would not allow differences in funding goals for the Covid-19 test, which would upset derailment stimulus negotiations with top Democrats.
Later, President Donald Trump said he would raise the stimulus proposal to more than the current $ 1.8 trillion. The House Democratic Party has passed a $ 2.2 trillion bill.
Meanwhile, the British government has announced plans to impose strict coronavirus restrictions on London, and the French government has announced a state of emergency earlier this week amid a surge in incidents. Germany has also announced new rules to control the spread of the virus.
“The global equity market remains in turmoil, sandwiched between expectations for a better economic future, but still unidentified pandemics and signs of weakening economic recovery,” said MRB Partners strategist. I’m suffering. ” “Unprecedented policy action has supported economic activity and pushed up risky asset prices, but not enough to generate self-reinforcing economic expansion.”
“The latter is still waiting for the success of COVID-19 treatment and vaccines, both of which had unfavorable news this week,” they added.
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