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Wall Street higher as consumer and bank stocks gain; Facebook falls

Earnings for S&P 500 companies are expected to increase on an average by 11.8% in the quarter


Wall Street higher as consumer and bank stocks gain

Wall Street's main indexes were higher on Friday as strong December drove gains in consumer and pushed up the financial sector.

The consumer discretionary index jumped 0.55 percent after data showed households bought a range of goods and figures for the prior month were revised higher, suggesting the exited 2017 with strong momentum.

rose 1.3 per cent and provided the biggest boost to the and the Nasdaq.

rose 0.5 per cent in choppy trading after the biggest US by assets reported profit that beat estimates, benefiting from higher interest rates and loan growth.

fell 0.7 per cent as the set aside more money in fourth quarter to cover expenses related to probes into its mortgage and sales practices.

The financial index rose 0.5 per cent.

"I don't think you would've seen a big pop in stocks, no one's surprised by these numbers," said of financial in Westport Connecticut.

While tax-related costs are expected to weigh on banks' earnings, they are expected to benefit in the long run from lower tax burden.

Earnings for 500 companies are expected to increase on an average by 11.8 per cent in the quarter with profit for financial services companies growing as much, according to I/B/E/S.

At 9:38 a.m. ET (1438 GMT), the was up 106.44 points, or 0.42 percent, at 25,681.17 and the 500 was up 5.24 points, or 0.19 per cent, at 2,772.8.

The was up 5.27 points, or 0.07 per cent, at 7,217.04.

The index was dragged by a 4 per cent fall in Facebook's shares after the company started changing the way it filters posts and videos on News Feed.

fell 2.66 per cent after the company said its microprocessors are prone to both variants of the Spectre security flaw, days after saying its risk for one of them was "near zero".

Futures fell briefly on Friday after consumer prices for December posted their biggest gains in 11 months, raising expectations of gaining momentum this year.

The Labor Department's Consumer Price Index, which excludes the and energy components, rose 0.3 percent last month. Economists polled by had forecast core CPI rising 0.2 percent.

Core CPI increased 1.8 percent in the 12 months through December, picking up from 1.7 percent in November.

Advancing issues outnumbered decliners on the NYSE by 1,462 to 1,035. On the Nasdaq, 1,445 issues rose and 969 fell.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 21:57 IST