Wall Street gains/ S&P 500 rise/ earnings boost stocks/ Capital One earnings/ Russia interest rate/ global markets/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ U.S. stocks rose on Friday, trimming most of the week’s losses as strong earnings reports bolstered investor confidence. The S&P 500 rose 0.9%, while the Dow and Nasdaq also gained as companies like Capital One and Deckers Outdoor reported positive earnings. European and Asian markets were mixed, while Russia’s central bank raised its interest rate to combat inflation.
Wall Street Earnings Drive Recovery: Quick Looks
- Market gains: The S&P 500 rose 0.9%, cutting into weekly losses as stocks rebounded.
- Earnings boost: Positive earnings reports from companies like Capital One and Deckers lifted investor sentiment.
- Global markets: European and Asian markets saw mixed results; Russia raised its interest rate to 21%.
- Key movers: Capital One jumped 8.6%, Deckers Outdoor climbed 12.7%, and Tapestry rose 14.2%.
Wall Street Gains as Earnings Boost Confidence, Trimming Weekly Losses
Deep Look
Stocks on Wall Street gained traction Friday morning, recouping most of the week’s earlier losses, with the S&P 500 up 0.9% by mid-morning trading. The Dow Jones Industrial Average rose 193 points, or 0.5%, to 42,544, while the tech-heavy Nasdaq composite saw a 1.4% boost. This week’s stock market recovery comes as investors weigh corporate earnings reports, which largely outperformed forecasts and reassured markets of solid financial performance.
Corporate earnings reports have been a focal point for Wall Street investors this week. The latest round of reports is providing a clearer picture of whether current stock valuations are justified, as rising Treasury yields add pressure to the market. Higher yields generally make equities less attractive relative to fixed-income investments, intensifying investor caution after record highs last week.
Several stocks posted notable gains after beating earnings expectations. Capital One Financial jumped 8.6% following a positive third-quarter report, while Deckers Outdoor, the parent company of Ugg footwear, surged 12.7% after upgrading its financial outlook for the year. In contrast, Capri Holdings, which owns luxury brands like Versace, Jimmy Choo, and Michael Kors, lost nearly 50% of its market value after a judge temporarily halted its acquisition by Tapestry, the maker of Coach handbags. Meanwhile, Tapestry’s stock rose by 14.2% following the ruling. The $8.5 billion acquisition had been challenged by the Federal Trade Commission six months ago, citing antitrust concerns.
Global financial news also impacted the market landscape. Russia’s central bank raised its key interest rate by two percentage points, setting it at 21%, a record high. This move aims to curb inflation driven by increased military spending due to the ongoing conflict in Ukraine.
In European markets, Germany’s DAX index was up 0.1%, France’s CAC 40 dipped by 0.2%, and the FTSE 100 in the United Kingdom edged down by 0.2%. Asian markets presented a mixed outlook, reflecting global investors’ cautious stance amid fluctuating economic indicators and geopolitical concerns.
The rally on Wall Street underscores the market’s resilience amid uncertainties, with investors balancing concerns over high stock prices and rising bond yields with optimism about corporate earnings.
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