Stocks Rise After Three Straight Days of Losses, After Retail Sales Beat Expectations.

Stocks Rise After Three Straight Days of Losses, After Retail Sales Beat Expectations.


Stocks rose Friday morning as markets looked to recover some of the last three days’ worth of losses. Investors eyed a slate of upbeat announcements from major companies including Boeing and Pfizer and a much better than expected print on spending by the U.S. consumer.

 

U.S. retail sales jumped 1.9% in September from August, blowing past estimates for a 0.8% gain, according to Bloomberg data. Spending at clothing stores surged 11% during the month but held below levels from September last year. Sales at department stores, auto dealers and sporting goods stores also contributed to retail sales’ fifth straight monthly gain.

 

The upsize surprise for on consumer spending the biggest contributor to U.S. economic activity helped offset concerns of the pace of recovery in the manufacturing sector. U.S. industrial production unexpectedly declined for the first time in five months in September, new Federal Reserve data showed.

 

Meanwhile, shares of Dow component Boeing (BA) jumped more than 4% after the company said Europe’s top aviation regulations agency EASA deemed that the 737 Max will be safe to fly again in the region before the end of the calendar year. The 737 Max had been grounded globally since March 2019 following two deadly crashes.

 

Pfizer (PFE), meanwhile, said in an update Friday that it expected to reach a key milestone in its COVID-19 vaccine candidate testing in the third week of November, after which it planned to apply for Emergency Authorization Use through the U.S. Food and Drug Administration. Shares increased by more than 1%.

 

The positive company news helped disperse some of the gloom around fast-fading prospects for fiscal stimulus out of Washington Senate Majority Leader Mitch McConnell broke with the White House and said he was going to have the chamber next week take up a proposal worth about $500 billion or less than a quarter the size of the proposal House Democrats advanced earlier this month.

 

President Donald Trump, for his part, suggested in a Fox Business interview he was willing to go higher than the $1.8 trillion packages he last put forward. Still, however, ongoing discussions between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have produced little tangible progress in the way of narrowing the spread between their plans.


Yahoo Finance.

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