Highlights
Equities recovered Friday from Thursday's funk as upbeat bank results kicked off quarterly earnings season and hopes for a soft landing continued.
The Dow Jones industrial average gained 1.0 percent, the S&P 500 rose 0.6 percent, and the Nasdaq firmed 0.3 percent. The S&P 500 posted another record close and both the S&P and Nasdaq recorded a fifth consecutive week of gains. Bond yields were mostly higher, the dollar index declined, and oil prices declined.
In economic reports, producer price figures came mostly in line with expectations to support the view that disinflation is continuing, the key to a soft landing. Consumer sentiment figures were slightly weaker than expected but the University of Michigan said the report suggests a stable consumer picture.
Cautious Federal Reserve comments remain somewhat disappointing to equity bulls hoping for aggressive rate cuts. Still, the market sees a favorable macro environment and the week's gains reflect that. Strong employment figures continue to dominate the discussion and hopes for an upbeat earning season are spreading.
Among sectors, money center banks led the day's winners after the market liked quarterly results from Wells Fargo and JP Morgan. Other outperformers included insurance, media, industrial metals, transports and small caps. Lagging were toys, tobacco, oil servicers, telecom and software.
The Dow Jones industrial average gained 1.0 percent, the S&P 500 rose 0.6 percent, and the Nasdaq firmed 0.3 percent. The S&P 500 posted another record close and both the S&P and Nasdaq recorded a fifth consecutive week of gains. Bond yields were mostly higher, the dollar index declined, and oil prices declined.
In economic reports, producer price figures came mostly in line with expectations to support the view that disinflation is continuing, the key to a soft landing. Consumer sentiment figures were slightly weaker than expected but the University of Michigan said the report suggests a stable consumer picture.
Cautious Federal Reserve comments remain somewhat disappointing to equity bulls hoping for aggressive rate cuts. Still, the market sees a favorable macro environment and the week's gains reflect that. Strong employment figures continue to dominate the discussion and hopes for an upbeat earning season are spreading.
Among sectors, money center banks led the day's winners after the market liked quarterly results from Wells Fargo and JP Morgan. Other outperformers included insurance, media, industrial metals, transports and small caps. Lagging were toys, tobacco, oil servicers, telecom and software.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
