By Yasin Ebrahim
Investing.com – The Dow rallied on Friday as more solid retail sales data suggesting the US consumer, the backbone of the economy, remains in good shape helped ease investor concerns about a slowdown of the recovery.
The upside is 0.91%, or 259 points. The grew by 0.60%, while the grew by 0.40%.
The Commerce Department said on Friday that retail sales were up. This confused economists’ forecasts for a 0.5% increase. The retail sales control group, which has a greater impact on US GDP, exceeds expectations for a 0.2% increase.
Some economists, however, have warned that the data could represent the “last hurray”
“The strength of September may have been the last hurray for the consumer this year. With back to school / work spending likely behind us and disposable income set to contract sharply in Q3 / Q4 with no new fiscal stimulus. , we will be lucky if consumption is stable in the fourth quarter, “Jefferies (NYSE 🙂 said in a statement.
Despite little progress in the stimulus talks, many believe it is a question of when, rather than if further federal aid will arrive, with House Speaker Nancy Pelosi suggesting earlier this week that a fiscal package will be launched before January.
Utilities, industry and healthcare have led the broader market to the upside, with the latter receiving a boost from a share increase in Regeneron Pharmaceuticals (NASDAQ 🙂 and Pfizer .
Pfizer (NYSE 🙂 said it will require emergency US approval of its Covid-19 vaccine which it is developing with Germany’s BioNTech in the third week of November. Pfizer grew more than 3% while Biontech Se (NASDAQ 🙂 added nearly 4%.
The news helped restore some optimism about a Covid-19 vaccine after both Eli Lilly and Company (NYSE 🙂 and Johnson & Johnson (NYSE 🙂 announced setbacks earlier this week.
The technology, however, lagged behind the broader move, even though Fab 5 shares were trading mostly to the upside.
Amazon.com (NASDAQ :), Facebook (NASDAQ :), Google-parent Alphabet (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 all rallied, while Apple (NASDAQ 🙂 was down 0.3%.
On the earnings front, investors digested conflicting company reports.
Bank of New York Mellon (NYSE 🙂 reported better-than-expected quarterly results both up and down, pushing its shares up 2%.
Schlumberger NV (NYSE 🙂 fell more than 7% after reporting mixed results after quarterly earnings beat, but revenues fell short of estimates, under pressure from coronavirus-induced disruptions to its drilling business .
In other news, Boeing (NYSE 🙂 was up 3% after the European aviation regulator said the company’s maligned 737 Max was fit to fly again.
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