By Yasin Ebrahim
Investing.com – Dow rallied on Friday as stronger retail sales suggesting the US consumer, the backbone of the economy, remains in good shape, helped ease investor concerns about a slowdown in the recovery.
The increase increased 0.91% or 259 points. It rose 0.60% while it rose 0.40%.
The Commerce Department said Friday that retail sales increased. It confused economists’ expectation of an increase of 0.5%. The retail control group ̵
However, some economists warned that the data could represent the “last hurray” for the consumer towards the end of the year, as income is likely to fall due to a lack of stimulus.
“The strength in September may have been the last hurray for the consumer this year. With back to school / labor costs probably behind us and disposable income expected to contract sharply in Q3 4 without fresh fiscal stimulus, we will be lucky if consumption is flat in the 4th quarter, “Jefferies (NYSE 🙂 said in a note.
Despite small advances in stimulus negotiations, many believe it is about when rather than further federal aid is coming, with House President Nancy Pelosi hinting earlier this week that a finance package will be rolled out by January.
Utilities, industry and healthcare led the broader market higher, with the latter boosted by a rise in shares of Regeneron Pharmaceuticals (NASDAQ 🙂 and Pfizer .
Pfizer (NYSE 🙂 said it would apply for urgent US approval of its Covid-19 vaccine, which it is developing with Germany’s BioNTech in the third week of November. Pfizer rose more than 3% while Biontech Se (NASDAQ 🙂 added almost 4%.
The news helped restore some optimism over a Covid-19 vaccine after both Eli Lilly and Company (NYSE 🙂 and Johnson & Johnson (NYSE 🙂 announced setbacks earlier this week.
Technology, however, delayed the broader move higher, even though Fab 5 stocks traded mostly higher.
Amazon.com (NASDAQ :), Facebook (NASDAQ :), Google Mother Alphabet (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 traded higher, while Apple (NASDAQ 🙂 fell 0.3%.
On the earnings front, investors digested mixed company reports.
The Bank of New York Mellon (NYSE 🙂 reported better-than-expected quarterly and bottom-line quarterly results, sending its stocks up 2%.
Schlumberger NV (NYSE 🙂 fell more than 7% after reported mixed results after its quarterly earnings slump, but revenue was less than estimates, pressured by coronavirus-led disruption in the drilling business.
In other news, Boeing (NYSE 🙂 rose 3% after the European Aviation Authority said the company’s malignant 737 Max jet was airworthy again.
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