Stock market today: stocks soar on strong retail sales and earnings


Most investors will enter this weekend with a spring in their approach. They can thank the booming retail sales and continued earnings momentum, which set up a nice end to Friday for the stock markets.

Overall retail sales rose unexpectedly for the second month in a row, as September’s figure rose 0.7% month-over-month, beating expectations of a 0.2% decline. And similar to August, September sales increased in categories such as clothing, groceries, general merchandise, non-store retail and miscellaneous.

“Households also benefited from an increase in income from government benefits in mid-August and September, thanks to advance payments of the child tax credit under the American Rescue Plan Act,” says the economist. from Barclays, Pooja Sriram. “As we noted earlier, retail sales have tended to do well in the months when households have received a pandemic relief stimulus.”

Also impressive the pros was Goldman Sachs (GS, + 3.8%), which reported 63% profit growth and 26% revenue growth to hit third-quarter best estimates and to cap a week of encouraging reports from Wells fargo (WFC, + 6.8%), Bank of America (TA, + 2.9%), Citigroup (C, + 2.1%) and others.

“Goldman Sachs is performing at a high level surpassing other major banks and gaining portfolio stakes in investment banking, commerce, and consumer and wealth management,” said CFRA analyst Kenneth Leon, which reiterated its strong buy rating on GS stock and raised its 12-month price target to $ 260 per share from $ 245.

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The Dow Jones Industrial Average led the major indices with a rise of 1.1% to 35,294, securing a weekly gain of 1.6%. The S&P 500 (+ 0.8% to 4,471) was up 1.8% for the week, and the Nasdaq Composite (+ 0.5% to 14,897) climbed 2.2% in the past five days.

Other stock market news today:

  • Small cap Russel 2000 followed the same path as its larger-cap brethren for most of the day, but turned red in the late afternoon, sliding 0.4% to 2,265.
  • Johnson & johnson (JNJ, + 0.7%) got a boost today after a Food and Drug Administration (FDA) advisory committee unanimously agreed that the federal agency should allow vaccine recalls Single dose COVID-19 from the pharmaceutical giant to the estimated 15 million people in the United States who have been shot. This follows Thursday’s announcement that the same panel recommended boosters for Moderna’s COVID-19 vaccine (ARNM, -2.3%) for people at high risk and people 65 and older, and is considered a key step in obtaining regulatory approval for additional doses. Looking ahead, Johnson & Johnson is one of the highlights of next week’s results list.
  • JB Hunt Transport Services (JBHT) jumped 8.7% after the freight operator reported higher than expected third-quarter earnings per share of $ 1.88 – up 59.3% from a year ago – and revenues of $ 3.1 billion, an improvement of 27.2% from the third quarter of 2020. “JBHT achieved third quarter earnings and the outlook for 2022 is excellent as a capacity return,” Susquehanna Financial Group analyst Bascome Majors said. But he maintained a neutral (Hold) rating on the stock. compared to other more cyclical companies related to trucking and logistics, ”he wrote in a note.
  • U.S. crude futures contracts jumped 1.2% to $ 82.28 a barrel.
  • Gold Futures fell 1.7% to close at $ 1,768.30 an ounce.
  • The CBOE Volatility Index (VIX) finished at 3.4% at 16.29.
  • As discussed today in our free One step forward bulletinSEC reportedly on the verge of its first approval of a futures contract Bitcoin AND F. It seemed to start a fire under Bitcoin, which climbed 6.2% to $ 61,436.15. (Bitcoin trades 24 hours a day; the prices listed here are at 4 p.m. each trading day.)

Will the American consumer feed the American markets?

The latest pace in retail sales could be more than a short-term boon to the stock market.

“The US economy is 70% dependent on the consumer, and pessimistic forecasters who thought stagnant economic growth (especially in terms of the stagflation story) was coming for the US… the US economy, and we predict a rise in stock prices this year and next, ”said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.

“We believe that going long on stocks is the best course of action, and that cyclical stocks such as financials, industrials, energy and materials are positioned for further gains,” he adds. .

Of course, if you think a more dynamic market is ahead, you can tap into this potential for more than just sector games. You might consider stocks like These 13 Cheap Dividend Aristocrats or These Five Over-Punished Stocks. You can also follow the advice of the jet set, following the billionaires in their most convinced choices.

However, if you want to get as close to the source as possible, check to see if company insiders eat their own cuisine. Here are seven stocks that have seen notable buys from at least one company insider in recent times – often a bullish signal that demonstrates great confidence that the company’s fortunes are about to break. to improve.

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