Dow closes 800 points higher on Friday, registers fourth straight week of gains

Pro Picks: Watch all of Friday's big stock calls on CNBC
Pro Picks: Watch all of Friday's big stock calls on CNBC

Stocks rose on Friday despite a tumble in Amazon shares after economic data pointed to slowing inflation and a steady consumer.

The Dow Jones Industrial Average closed 828.52 points, or about 2.6%, higher at 32,861.80. The S&P 500 added nearly 2.5%, to close at 3,901.06. The Nasdaq Composite ended up about 2.9%, to close at 11,102.45.

On a weekly basis, the major indexes made notable gains. It was the fourth positive week in a row for the Dow, a first since a five-week streak ending in November 2021. The 30-stock index is up 5.7% this week in its best performance since May. It's also on track for its best month since January 1976.

The S&P 500 and the Nasdaq are up 3.9% and 2.2%, respectively, for the week.


The stock market has fractured this week as investors dumped technology shares following weak results and outlooks from Microsoft, Alphabet and Meta and rotated into economically sensitive stocks that will benefit if the U.S. economy can skirt a recession.

At the same time, investors have found hope in data that came out over the course of the week indicating inflation may be easing, increasing optimism that the Federal Reserve could break from its trend of 75 basis point rate hikes after the November meeting.

"Inflation data really wasn't that bad. The earnings have been not great, but not awful," said Megan Horneman, chief investment officer at Verdence. "When you have that middle of the road, that helps equity markets."

Amazon plunged by 6.8% after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance Thursday. Apple shares ended Friday up 7.5%. The tech giant reported weaker-than-anticipated iPhone revenue on Thursday, but beat Wall Street estimates for quarterly earnings and revenue.

Apple and other more positive performers, like Intel, have given investors footholds within what some see as a particularly tumultuous tech sector, subsequently providing upward pressure to the tech-heavy Nasdaq, said Jay Hatfield, CEO of Infrastructure Capital Management. He said the market was also boosted by oil giants Chevron and Exxon Mobil, up about 1.2% and 2.9%, respectively, after both reported beating expectations before the bell.

"Apple's really the lone star, if you will, of the mega-cap tech stocks," Hatfield said. "It's just a unique market where bad is terrible, but OK is good, so, on a relative basis, it's spectacular."

The market got a boost after the core personal consumption expenditures price index in September increased 0.5% from the previous month and 5.1% from a year ago, still high but mostly in-line with expectations. This is the preferred gauge of inflation for the Federal Reserve. Personal spending rose 0.6%, more than expected, the data showed.

Lea la cobertura del mercado de hoy en español aquí.

More than two-thirds of Friday's 52-week highs in the S&P 500 were all-time records

Twenty of the 29 stocks (69%) in the S&P 500 that touched 52-week highs on Friday also touched all-time highs.

Three of the 29 are also in the Dow Jones Industrial Average — Merck, McDonald's and Amgen — and only Amgen failed to reach an all-time high.

  • Raymond James Financial (RJF), rose to the highest ever, going back to its 1983 IPO
  • W.R. Berkley (WRB), all-time high since going public in the early 1970s
  • Biogen (BIIB), highest since Oct. 2021
  • Elevance Health (ELV), all-time high dating back to 2001 IPO
  • Huntington Ingalls (HII), highest since Feb. 2020
  • T-Mobile US (TMUS), all-time going back to MetroPCS IPO in 2007
  • General Parts Co. (GPC), all-time high back to 1948 IPO
  • McDonald's (MCD), all-time high back to 1965 IPO
  • O'Reilly Auto (ORLY), all-time high back to 1993 IPO
  • Campbell Soup (CPB), highest since Jan. 2021
  • General Mills (GIS), all-time high going back to 1927
  • Hershey (HSY), all-time high back through 1972 history
  • Pepsico (PEP), all-time high back to Pepsi merger with Frito-Lay in 1965 to form Pepsico
  • J.M. Smucker Company (SJM), highest since Aug. 2016
  • Chevron (CVX), all-time high back to 2000 merger with Texaco
  • Exxon (XOM), all-time high back to 1920 NYSE listing
  • Principal Financial (PFG), all-time high back to 2001 IPO
  • Everest RE Group (RE), all-time high back to 1995 IPO
  • Amgen (AMGN), highest since Jan. 2021
  • Cardinal Health (CAH), highest since Aug. 2017
  • Cigna (CI), all-time high back to 1972 IPO
  • Gilead Sciences (GILD), highest since July 2020
  • Humana (HUM), all-time high back to IPO as Extendicare in 1968 (renamed Humana in 1974)
  • Eli Lilly (LLY), all-time high back to 1952 when company first offered shares publicly 
  • McKesson (MCK), all-time high back through 1983
  • Lockheed Martin (LMT), all-time high back to merger of Martin Marietta and Lockheed in 1995
  • Northrop Grumman (NOC), all-time high back to merger of Northrop Aircraft and Grumman Aerospace in 1994
  • Rollins Inc (ROL), highest since Jan. 2021
  • Constellation Energy (CEG), all-time high back to spin-off from Exelon in Jan. 2022

— Scott Schnipper, Christopher Hayes

Indexes close up

The Dow ended up 828.52 points, or about 2.6%, at 32,861.80. That marks its fourth straight week of gains. It's also on track for its best month since January 1976.

The S&P 500 increased roughly 2.5% to close at 3,901.06. It's the first time the index closed above 3,900 since September.

After initially opening lower due to poor tech earnings, the Nasdaq changed course and climbed nearly 2.9% to end at 11,102.45.

— Alex Harring

Coffee futures slumped this week, taking down an ETN that tracks your morning cup

December coffee futures fell 5.1% Friday to 169.8 cents a pound after touching 167.75 cents, the lowest since July 2021. Traders figured Brazil's crop outlook is improving and a softer global economy might weaken demand.

For the week, coffee closed down 11.05%, the steepest weekly decline since Sept. 2020.

As a result, the Barclays iPath Bloomberg Coffee exchange traded note (JO) dropped 11% this week and 24% over the past month.

— Scott Schnipper, Gina Francolla

Caterpillar logs best week in over a decade

Wall Street may be worried about a looming recession, but one of the stocks most leveraged to the economy is on a hot streak.

Caterpillar finished the week up 15.3%, its best week since 2009.

That is due in part to a strong third-quarter report, where the machinery company beat Wall Street estimates for adjusted earnings and revenue. Caterpillar also gave upbeat guidance about the fourth quarter.

—Jesse Pound

Simplify launches two more income-focused ETFs

Income-focused ETFs have become increasingly popular as stocks have fallen and interest rates have climbed, and the space continues to expand.

On Friday, Simplify launched a Stable Income ETF (BUCK) and Enhanced Income ETF (HIGH). Both funds plan to sell option spreads on broad indexes in order to generate income and invest in short duration debt.

The new funds have an expense ratio of 0.36% and 0.51%, respectively.

Simplify is a smaller player in the ETF space, but its Interest Rate Hedge ETF (PFIX) has been one of the best products on the market in 2022. The fund has seen its price roughly double this year.

— Jesse Pound

S&P 500 nears 3,900

The S&P 500 has broken 3,900 points, and continues to fluctuate around that threshold, as markets near close.

If the index closes above 3,900 points, it would be the first time that level was hit since Sept. 15, when it closed at 3901.35.

— Alex Harring

CNN Fear & Greed Index hits its highest point since August

Maybe the market's changing its mind?

CNN Business' Fear & Greed Index, a measure of seven different market indicators, stands at its highest since the height of the August recovery that off the June lows.

On Friday, the index hit 61, the most since reaching 64 on August 19. The index gives each indicator equal weighting, with the cumulative reading calculating a score from 0 (maximum fear) to 100 (maximum greed). The seven components track market momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and demand for safe havens.

Nationwide's chief of investment research Mark Hackett notes that "the tone of the market is shifting, with investor sentiment and momentum showing significant improvement, and the market higher in three of the past four weeks. While the fundamental picture remains challenged, technical rebounds almost always predate a fundamental turnaround, as investors realize that too much negativity is priced into markets."

August 1982, anyone? That's when stocks began to turn far in advance of improved economic numbers in 1983.

— Scott Schnipper, Jeff Cox

Meta downgraded by Edward Jones due to concerns over metaverse investment

Following disappointing earnings, Edward Jones downgraded Meta to a hold from a buy.

The firm said the tech giant's plans for increasing spending on the metaverse was larger than originally anticipated. That elevated concerns over how long a return on investment will take.

To be sure, Edward Jones did report some potential tailwinds. It believes the company can see ad revenue, which is a hot topic this earnings season given its connection to total revenue, can return to growth by late 2023.

Earnings per share came in lower than expected, though the company did beat on revenue, according to its earnings report this week. Share values plummeted more than 20% on the news. They are down 70% so far this year.

— Alex Harring

Dow up more than 800 points entering final trading hour

The Dow was up 804 points, or 2.5%, heading into the final hour of trading.

The Nasdaq and S&P 500 also continued to rally, adding 2.7% and 2.4%, respectively.

— Alex Harring

Tech ETFs see big inflows despite earnings season struggles

A rough earnings stretch for Big Tech may have caused some big moves for stocks, but it hasn't scared off investors from the space as a whole.

According to FactSet, the four biggest tech and consumer discretionary ETFs have seen positive inflows over the past week. Even the Ark Innovation ETF, seen as one of the riskier ways to bet on tech, has attracted significant money.

— Jesse Pound

Dow on track for best month in nearly half a century

The Dow is up slightly over 14% this month. If that performance holds, it would be the best month for the index in nearly half a century.

The Dow has added 14.06% compared to the start of the month, according to FactSet. The last time it saw a better month was in January 1976, when it had a gain of 14.41%.

Compared to prior Octobers, it is on track to be the best montly gain in any October since the index's inception in 1896.

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— Alex Harring

McDonald's earnings underscore why investors should hold the stock during difficult times, Morgan Stanley says

McDonald's strong third-quarter results further prove why investors should hold the stock during difficult macroecnomic periods, Morgan Stanley said.

"MCD is often owned as a classic defensive stock, with pushback that valuation and crowding limit upside, but 2Q and 3Q results are hard to ignore, and offer a proof point that the brand is also a way to play offense," wrote analyst John Glass in a note to clients Thursday.

In its third-quarter report released Thursday, McDonald's beat top and bottom lines estimates and said customers continue to flock to restaurants despite rising menu prices.

While McDonald's does face some inflation-drive margin pressures and foreign exchange headwinds, Glass said company offers "best in class" top line growth stemming from previous investments in marketing, digital and innovation.

"Rather than suffering from current consumer challenges, MCD appears to be leaning in, with a combination of relevant value, adept marketing and growing digital prowess," he said.

McDonald's shares are up roughly 2% this year and rose more than 3% on Friday. Morgan Stanley's $285 price target suggests a 7.5% upside for the stock from Thursday's close.

— Samantha Subin

Halfway through earnings season, 3Q profits are up about 4% despite high-profile misses

We're halfway through earnings season, according to Refinitiv.

Here's where were stand: There have been more misses so far this season, with 22% of companies that have reported falling short of earnings estimates and 33% shy on revenue, according to Refinitiv.

That's definitely higher than trends over the past year. The average for the four previous quarters is 18% missed on earnings and 26% missed on revenue, according to the data provider.

But despite the disappointing performances, the current earnings growth rate still hovers around 4% for the third quarter. That's right around where it was before the season started. It's currently at 4.1% vs. 4.5% on Oct. 1, it said.

Within that average, though, are some steeper drop-offs. The growth rate for the financial sector has sunk about 7 percentage points since the start of earnings season. The same goes for industrials and materials. Communication services has fallen about 5 percentage points. And this may surprise you: Tech is only down 2 percentage points.

While the third-quarter growth rate has been stable, fourth-quarter estimates have dropped much more.

Profits are expected to rise 2.6% in the current quarter, compared with an estimate of 5.8% growth when the month began.

—Robert Hum

`Tech wreck' notwithstanding, the $36 billion SPDR Tech ETF is on pace for a 2nd straight weekly gain

You wouldn't know there was a "tech wreck" by looking at the $36-billion market cap Technology Select Sector SPDR Fund this week.

The fund, with 78 stocks, tracks the S&P 500 Information Technology Index and climbed as much as 2.44% in early trading Friday, on pace for its first up day in three, and its second straight positive week.

Leaders Friday include Verisign, Intel, AMD and Apple, all of which posted early gains of 4% or more.

So, what about the "tech wreck"?

The XLK doesn't include either Amazon or Meta Platforms, which both posted disappointing earnings. That helps.

— Scott Schnipper, Gina Francolla, Jesse Pound

Technology names among stocks making the biggest moves midday

Technology names and companies that reported earnings results were among the names making the biggest moves midday:

Check out the full list of stocks making the biggest moves midday here.

— Carmen Reinicke, Samantha Subin

Costco poised for big year, according to Morgan Stanley

2023 could be a "special year" for club retailer Costco, according to Morgan Stanley.

Analyst Simeon Gutman said in a note to clients that the company could see a price hike and a special dividend next year.

"While we don't think either are imminent, it would surprise us if both don't happen at some point in calendar '23," Gutman wrote.

And beyond next year, the company could see sustained growth from its international push.

"International expansion is a key part of the investment case because: 1) COST is underpenetrated in many countries; 2) the concept is one of the few in Retail that resonates across geographies; and 3) the value proposition is even more pronounced than in the US because competition in the Club channel is lower," Gutman wrote in a note to clients.

Morgan Stanley reiterated its overweight rating on the stock. Shares of Costco were up 1.55% in morning trading.

— Jesse Pound

Indexes up 2% as second half of trading begins

All three indexes were trading up around 2% entering the second half of trading.

The Dow added 711 points, or 2.2%.

The S&P 500 was up 76 points, or 2%.

Despite being weighed down earlier in the day by disappointing big-tech earnings, the Nasdaq gained 240 points, or 2.2%, as investors looked to other tech stocks performing better in earnings season.

— Alex Harring

Friday kicks of a period of historically strong trading for S&P 500

Friday marked the start of a five-trading-day period that has historically been the best of the year for the S&P 500.

Stocks gained 1.62% on average for the five trading days starting Oct. 28 since 1950, according to Ryan Detrick, chief market strategist at Carson Group. That is the best out of all periods of five trading days in the year when averaging performance.

The five trading days starting the next day, Oct. 29, mark the second highest period at 1.52%.

— Alex Harring

Dow Industrials in October are on pace to record their best month since President Reagan

It's been a tough 2022 for almost every kind of investor, but maybe it's really morning in America again.

The Dow Jones Industrial Average is higher by 13.4% so far in October — on pace for its single best monthly performance since January 1987, when it climbed 13.8%.

In January 1987, there were still two more years to run in President Reagan's second term. And only about nine months to go before the fateful October 19, 1987 stock market crash that drove down the Dow by a record 22.6% in a single day.

— Scott Schnipper, Peter Schacknow

The S&P 500's highs and lows

The following companies in the