The markets bounced back nicely Friday, after dropping suddenly on Thursday. The Dow Jones Industrial Average rose 77.96 points (+0.56%), Standard & Poor's 500 index increased 7.39 points (+0.48%), and the Nasdaq finished up 33.48 points (+1.21%). Volume on the NYSE was pretty light at 1.04 billion shares, and advancers beat decliners by a ratio of about 8:5.
Two key pieces among the flurry of economic data helped boost stocks in the morning. The Department of Commerce reported sales increased 0.6%, topping estimates of 0.2%. Excluding autos, sales increased 0.4%, which was in-line. Investors were delighted to see consumers were still spending money and supporting the US economy (full story). The PPI was released at the same time, and it gave a reading of 1.1% higher versus economists' estimates of 0.5%. However the core-PPI, which excludes food and energy, was only 0.1% higher. The number beat estimates of 0.2%. The US 10-year Treasury dropped 11/32, pulling yields up to 4.68%.
The tech sector (+0.9%) resumed its lead position and pushed the markets higher along with the materials (+0.9%) and energy (+0.7%) sectors. Energies got a boost from crude oil, which spike over $84 for some time before finishing up $0.84 to $83.92. Oracle (-0.09%) grabbed headlines early in day after it bid $6.7 billion for BEA Systems (+38.2%) (full story). GE (-2.1%) slid after meeting expectations in its third-quarter earnings and reaffirming its outlook (full story). McDonald's (+1.2%) continued its hot streak, as it guided higher than expected for its third-quarter earnings due October 19th (full story). Citigroup (-1.4%) fell on a downgrade by Deutsche Bank.
The only economic news slated for Monday is the Empire State Manufacturing Survey (8:30 AM), and it is not expected greatly impact the market. Look for earnings reports from Citigroup (Pre-Market) and Genentech (Post-Market) to drive the market to start the week.
Have a pleasant weekend.
Commentary: Citibank Earnings Preview • Lack of Stock Market Breadth Warns of Danger Ahead
Stocks to watch: DNA, GE, C, BEAS, ORCL
Related: Next Week's Earnings