U.S. stocks soared on Friday, driven by a string of strong earnings reports. According to financial data provider FactSet, 79% of S&P 500 companies that reported earnings exceeded estimates. The Dow Jones Industrial Average, in particular, had its best month since January as first-quarter earnings surprised in upside, allowing investors to overcome concerns about the banking sector.
All three major indexes closed in the green, with the Dow gaining 2.5% for April. More than half of all companies in the S&P 500 have already reported first-quarter financials, 79% of which beat earnings estimates but on Friday investors were hit with renewed concerns about the banking sector as reports suggested First Republic Bank was to be acquired by the Federal Deposit Insurance Corporation. Shares of First Republic fell as much as 52% during the session.
At the close of trading on Friday, the S&P 500 was over0.83 at 4,169.58, while the Dow Jones Industrial Average rose0.81, or272.79 points, to close at 34,098.95. The Nasdaq Composite gained0.69 to 12,226.58. Data released on Friday also showed that the particular Consumption Expenditures indicator, the Federal Reserve's favored measure of affectation, rose just0.1 over the once month.
Meanwhile, the Employment Cost indicator rose1.2 over the once quarter, indicating that affectation's presence is still being felt in the frugality. Lazard's principal request strategist, Ron Temple, said in a note that" the case for another Fed rate hike coming week has been solidified by moment's Employment Cost indicator and particular Consumption Expenditure reports showing ongoing cost pressures." He added that" it's clear that the US frugality remains flexible in the face of tensing to date, inferring that the Fed's job isn't yet complete."
Investors are now pricing in an 88 chance that the Federal Reserve will hike interest rates another 25 base points at coming week's meeting of the Federal Open Market Committee, according to the CME Fed Watch tool. In other news, "Dr. Doom" economist Nouriel Roubini advised that a hard wharf recession or settled affectation are the only possible issues for the US frugality.
" Shark Tank" investor Kevin O'Leary dismissed enterprises of de-dollarization, stating that he wouldn't accept the Chinese yuan in business deals. Eventually, the 10- time Treasury yield fell eight base points to3.43, and Bitcoin declined about 1 to$ 29,363.