U.S. stocks surged on Friday, lifting the Dow industrials and S&P 500 above their record closes, after the Bank of Japan unexpectedly expanded stimulus, increasing hopes for the global economy.
"Although quantitative easing might be in the rear window for us here in the United States, it's present for Japan, and when you get something unexpected like this, you buy equities and sell commodities," said Art Hogan, chief market strategist at Wunderlich Securities.The U.S. dollar climbed against the currencies of major trading partners, including the Japanese yen, while dollar-denominated commodities including gold and oil dropped sharply.
LinkedIn gained after the online professional network reported third-quarter sales that beat expectations; GoPro rose after its fourth-quarter profit outlook topped estimates; Citigroup gained after reporting a $600 million legal hit; Starbucks dropped after the coffee retailer tallied quarterly revenue that disappointed, and Exxon Mobil rose after reporting a 3 percent increase in quarterly profit.
The Bank of Japan increased its yearly target for monetary expansion to 80 trillion yen, or $724 billion, from as much as 70 trillion yen.
"You could argue that Japan has more structural issues than monetary, but as you look around the globe, the market will most likely applaud when countries that have slowing economies do things to stimulate," said Hogan, who added the "ECB is probably the next up," referring to the European Central Bank. The Dow Jones Industrial Average rose 200 points to an intraday record of 17,395.54, and was lately up 155.44 points, or 0.9 percent, at 17,350.86, with Intel leading blue-chip gains that included 29 of 30 components. After coming within 2 points of its intraday record set Sept. 19, the S&P 500 added 17.15 points, or 0.9 percent, to 2,011.80, with technology leading gains and utilities the sole decliner among its 10 major sectors.
Trading at a multi-year high, the Nasdaq rose 55.13 points, or 1.2 percent, to 4,621.22.
The CBOE Volatility Index, one measure of investor uncertainty, shed up 0.2 percent to 14.49.
For every share falling, more than two rose on the New York Stock Exchange, where 441 million shares traded as of 2:05 p.m. Eastern. Composite volume cleared 2.4 billion. On the New York Mercantile Exchange, gold futures for December delivery dropped $27, or 2.4 percent, to $1,172.70 an ounce. Crude-oil futures for December fell 90 cents, or 1.1 percent, to $80.22.The yield on the 10-year U.S. Treasury note used to figure mortgage rates and other consumer loans rose 2 basis points to 2.3248 percent.
Equities offered muted reaction to Friday data that had U.S. consumer spending unexpectedly falling in September, a gauge of manufacturing activity in the Chicago region hitting 66.2 in October, better than the estimated 60.0, and U.S. consumer sentiment rising to 86.9 in October versus an expected 86.4.
On Thursday, U.S. stocks jumped, with Visa helping lift the Dow industrials into the green for October, after data showed the U.S. economy grew more than expected last quarter.
source: CNBC
"Although quantitative easing might be in the rear window for us here in the United States, it's present for Japan, and when you get something unexpected like this, you buy equities and sell commodities," said Art Hogan, chief market strategist at Wunderlich Securities.The U.S. dollar climbed against the currencies of major trading partners, including the Japanese yen, while dollar-denominated commodities including gold and oil dropped sharply.
LinkedIn gained after the online professional network reported third-quarter sales that beat expectations; GoPro rose after its fourth-quarter profit outlook topped estimates; Citigroup gained after reporting a $600 million legal hit; Starbucks dropped after the coffee retailer tallied quarterly revenue that disappointed, and Exxon Mobil rose after reporting a 3 percent increase in quarterly profit.
The Bank of Japan increased its yearly target for monetary expansion to 80 trillion yen, or $724 billion, from as much as 70 trillion yen.
"You could argue that Japan has more structural issues than monetary, but as you look around the globe, the market will most likely applaud when countries that have slowing economies do things to stimulate," said Hogan, who added the "ECB is probably the next up," referring to the European Central Bank. The Dow Jones Industrial Average rose 200 points to an intraday record of 17,395.54, and was lately up 155.44 points, or 0.9 percent, at 17,350.86, with Intel leading blue-chip gains that included 29 of 30 components. After coming within 2 points of its intraday record set Sept. 19, the S&P 500 added 17.15 points, or 0.9 percent, to 2,011.80, with technology leading gains and utilities the sole decliner among its 10 major sectors.
Trading at a multi-year high, the Nasdaq rose 55.13 points, or 1.2 percent, to 4,621.22.
The CBOE Volatility Index, one measure of investor uncertainty, shed up 0.2 percent to 14.49.
For every share falling, more than two rose on the New York Stock Exchange, where 441 million shares traded as of 2:05 p.m. Eastern. Composite volume cleared 2.4 billion. On the New York Mercantile Exchange, gold futures for December delivery dropped $27, or 2.4 percent, to $1,172.70 an ounce. Crude-oil futures for December fell 90 cents, or 1.1 percent, to $80.22.The yield on the 10-year U.S. Treasury note used to figure mortgage rates and other consumer loans rose 2 basis points to 2.3248 percent.
Equities offered muted reaction to Friday data that had U.S. consumer spending unexpectedly falling in September, a gauge of manufacturing activity in the Chicago region hitting 66.2 in October, better than the estimated 60.0, and U.S. consumer sentiment rising to 86.9 in October versus an expected 86.4.
On Thursday, U.S. stocks jumped, with Visa helping lift the Dow industrials into the green for October, after data showed the U.S. economy grew more than expected last quarter.
source: CNBC