US stocks rose on Friday morning as Treasury yields tipped lower, but markets were still on track for weekly losses as uncertainty over the Fed’s next move shadowed an earnings season in full swing.
The S&P 500 (^GSPC) gained 0.8% after the benchmark snapped a three-day losing streak. The Dow Jones Industrial Average (^DJI) added 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) put on 1.3%.
Stocks are reviving somewhat as a pullback in US bond yields lifted some recent pressure on risk appetite. The benchmark 10-year yield (^TNX) slipped to around 4.19%, easing back from a three-month high above 4.25% hit midweek.
But the Dow and S&P 500 still look poised for downbeat weeks after taking a hard knock from that surge, amid worries the Federal Reserve will go slow on interest rate cuts.
Investors are now starting to brace for potential disruption on the horizon from the November US jobs report due next Friday and the tight presidential election a week later.
Meanwhile, the spate of earnings is easing as the week draws to a close, with Colgate-Palmolive (CL) the highlight.
At the same time, Tesla’s (TSLA) earnings surprise has laid the ground for five other “Magnificent Seven” megacaps reporting next week: Google parent Alphabet (GOOG, GOOGL), Meta (META), Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN).
US consumers are feeling better about the economy following the Federal Reserve’s major interest rate cut and heading into the final days of the presidential election.
“This month’s increase was primarily due to modest improvements in buying conditions for durables, in part due to easing interest rates,” said Joanne Hsu, director of consumer surveys.
The Consumer Sentiment Index rose to 70.5 in the October 2024 survey released Friday, up from 70.1 in September and above last October’s 63.8.
Consumers’ views of labor markets became more favorable in October, Hsu said. And the share of consumers who, when not prompted, mentioned the the negative effect of high interest rates or tight credit on buying conditions for large purchases fell in October, according to the report.
Concerns over high interest rates for durable goods fell to their lowest levels in two years, the report said, suggesting a fresh willingness to purchase those goods in the near term.
Today at 3:00 PM UTC
Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:
Deckers Outdoor (DECK): The footwear company surged more than 12% Friday morning after reporting earnings that beat expectations and raising its annual sales forecast. Among the standout results was a greater than 35% rise in Hoka sales and a 13% gain in sales of the UGG brand.
Capri (CPRI): Shares of the fashion company cratered after a judge blocked the parent of Michael Kors from being acquired by Coach owner Tapestry (TPR). Tapestry, meanwhile, jumped more than 15% following the decision, which said that the merging parties are close competitors and whose merger would lead to less competition in the “accessible luxury” handbag market.
Booz Allen Hamilton (BAH): The government and military contractor gained 13% after reporting second quarter earnings that beat analyst expectations and rose 18% compared to the same period last year. While other consulting firms have struggled as the advancements of AI technology may challenge the business model, Booz Allen raised its fiscal 2025 outlook and projected revenue growth as high as 13%.
Capital One Financial (COF): Shares of the bank increased 9% Friday morning after reporting earnings that beat expectations on strong results from the credit card and auto-lending businesses. Capital One is also seeking to acquire Discover in a $35 billion deal but the transaction is facing regulatory scrutiny.
Today at 2:22 PM UTC
Tesla is still a car company — and for now, that’s OK
What seems clearer after Tesla’s latest earnings report is that, for now, it is primarily a car company, writes Yahoo Finance’s Julie Hyman. And the more successful a car company is, the more runway investors will give it to transform.
The numbers help tell the story: Tesla’s automotive revenue was $20.02 billion last quarter, a full 79% of the total. Auto services accounted for 11%, and energy generation and storage about 9%.
It was profitability that really encouraged investors last quarter, coming in at 17.1% for the auto segment, ex-regulatory credits. That helped send Tesla’s stock soaring 22% for its biggest single-day gain since May 2013, together with Musk’s predictions that deliveries will rise this year and growth will be “something like 20% to 30%” next year.
It also sent Tesla shares back into the green for the year, after what’s been a bumpy road. In the two weeks since the company’s robotaxi event, the stock had slumped by 11%.
US stocks rose on Friday morning as Treasury yields tipped lower and as uncertainty over the Fed’s next move shadowed an earnings season in full swing.
The S&P 500 (^GSPC) rose roughly 0.5% after the benchmark snapped a three-day losing streak. The Dow Jones Industrial Average (^DJI) added 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) gained around 0.6%.
Stocks are reviving somewhat as a pullback in US bond yields lifted some recent pressure on risk appetite. The benchmark 10-year yield (^TNX) slipped to around 4.18%, easing back from a three-month high above 4.25% hit midweek.
The S&P and the Dow are on track to record losses for the week.
Today at 12:04 PM UTC
Good morning. Here’s what’s happening today.
Economic data: Durable goods orders (September preliminary); University of Michigan Consumer Sentiment, (October); Kansas City Fed Services Activity (October).
Earnings: New York Community Bancorp (NYCB), Colgate-Palmolive (CL), Booz Allen Hamilton (BAH), Aon (AON), WisdomTree (WT), Piper Sandler (PIPR), Centene Corporation (CNC), Newell Brands (NWL).
Here are some of the biggest stories you may have missed overnight and early this morning:
