US stocks closed higher on Friday after Goldman Sachs became the latest big bank to report strong quarterly earnings, and Wall Street’s three major indexes posted gains this week.
Shares of Goldman Sachs Group jumped, giving the Dow its biggest boost, as a record wave of deal-making activity boosted the bank’s quarterly earnings.
Other major banks also rose and were among the top positive for the S&P 500. The Banks Index for the index ended sharply higher.
Results from major financial institutions this week provided a solid start to third-quarter earnings in the US, although in the coming weeks investors will still be watching for signs of the implications of supply chain disruptions and rising costs, especially for energy.
Expectations are now for S&P 500 earnings to show a 32% rise in the third quarter from a year ago. The latest forecast, based on the results of 41 S&P 500 companies and estimates of the rest, is up from 29.4% at the beginning of October, according to IBES data from Refinitiv.
said Peter Toze, president of Chase’s investment advisor firm in Charlottesville, Virginia.
Alcoa Corp shares rose after the aluminum producer reported stronger-than-expected results, announced a $500 million buyback program and began paying quarterly cash dividends.
According to preliminary data, the S&P 500 index rose 33.35 points, or 0.75%, to close at 4,471.61 points, while the Nasdaq Composite Index rose 73.55 points, or 0.50%, to 14,896.98 points. The Dow Jones Industrial Average rose 384.83 points, or 1.10 percent, to 3,5297.39 points.
The US Commerce Department reported a surprising rise in retail sales in September, although investors remain concerned that supply restrictions could disrupt the holiday shopping season. The preliminary reading of consumer confidence in October came in slightly below expectations.
Shares of some airlines and other travel-related companies rose as the White House announced that it will lift travel restrictions for fully vaccinated foreign nationals starting November 8.
Moderna’s shares fell. A Wall Street Journal report, citing people familiar with the matter, said the US Food and Drug Administration is delaying its decision on authorizing Moderna’s COVID-19 vaccine for adolescents to check whether the shot might increase the risk of heart infection.
On Thursday, a panel from the U.S. Food and Drug Administration voted to recommend booster doses of the COVID-19 vaccine for Americans 65 and older and those at high risk.
Shares of crypto and blockchain-related companies including Riot Blockchain gained as bitcoin reached $60,000 for the first time since April.