US stocks wrap up week on a high note

Indices register fourth weekly losses were fourth in a row though

U.S. stock market wrapped up the week on a relative high note on Friday, 17 October 2014, with the key benchmarks registering more than 1% gains on Friday. Equities spiked at the start of the session after overnight comments from central bank officials boosted investor sentiment. To that point, European Central Bank executive member Benoit Coeure said that ECB purchases of asset-backed securities are set to begin within days, while Bank of England Chief Economist Andy Haldane also walked the dovish line, saying that recent economic data speaks in favor of delaying the BoE's first rate hike.

The Dow Jones Industrial Average jumped 263.17 points, or 1.6%, to 16,380.41. The Nasdaq Composite rose 41.05 points, or 1%, to 4,258.44. The S&P 500 gained 24 points, or 1.3%, to 1,886.76, led by gains in industrials and health care sectors. But The main benchmarks were still left nursing modest weekly losses after brutal selloffs earlier in the week. Weekly losses were fourth in a row.

Earlier in the week, investors exhibited panicky selling behavior as concerns over global growth, volatility in oil and the dollar, as well as fear of the spread of Ebola, converged.

On Friday, stocks also got a boost from upbeat earnings reports from heavyweights, such as General Electric, Honeywell and Morgan Stanley.

Several heavyweights reported results ahead of the opening bell. General Electric shares rose 2.4% after third-quarter earnings topped market expectations. Defense contractor Honeywell International lifted its low end of its 2014 per-share outlook, after third-quarter earnings beat expectations, sending the shares 4.3% higher. Morgan Stanley gained 2.1% after the bank reported third-quarter earnings that topped forecasts.

Among other stocks under focus, Google shares fell 2.6% after the Internet giant late Thursday reported third-quarter below forecasts. SanDisk shares fell 2.9%, after its cautious guidance overshadowed better than expected earnings.

In economic news on Friday, the U.S. government said the annual rate of total housing starts rose to 1.02 million lin the past month, roughly matching economists' expectations. Federal Reserve Chairwoman Janet Yellen said in a speech that the recent rise in inequality in the U.S. is of great concern.

Separately, consumer sentiment in October hit a fresh seven-year high. Though, economists say the final release may be revised lower on account of Ebola fears as well as turmoil on Wall Street.

Bullion metals ended lower on Friday, 17 October 2014 at Comex. Gold futures fell on Friday, but closed out the week higher as global growth fears hit equities and helped safety plays.

Gold for December delivery shed $2.20, or 0.2%, to settle at $1,239 an ounce with all three major stock indexes in positive territory. A day earlier, on Thursday, gold futures snapped a three-session winning streak as haven demand eased on the back of a recovery in the U.S. stock market.The contract gained for the second week in a row, adding 1.4%. December silver dropped 11 cents, or 0.6%, to $17.33 an ounce. For the week, it edged up 0.2%.

Crude oil futures rose modestly on Friday, 17 October 2014 extending gains to a second straight session, but the uptick only chipped away at steep weekly losses. Oil prices started to stabilize after New York-traded oil briefly traded under $80 a barrel on Thursday.

Light, sweet crude futures for November delivery gained 5 cents, or 0.1%, to settle at $82.75 a barrel on the New York Mercantile Exchange. On the week, oil lost 3.6% for a third consecutive weekly loss.

Treasuries ended in the red with the 10-yr yield climbing four basis points to 2.20%.

Participation received a boost from options expiration with more than a billion shares changing hands at the NYSE floor.

There is no economic data of note scheduled for a Monday release.

Powered by Capital Market - Live News