Despite some disappointing earnings reports, stocks rose on Friday as Wall Street ended a volatile week on a high note.
The Dow Jones Industrial Average rose 748.97 points, or 2.47%, to close at 31,082.56. The S&P 500 rose 2.37% to 3,752.75. The Nasdaq composite added 2.31% to 10,859.72.
Silver’s moves extended the market’s gains for the week. The S&P 500 and Dow rose 4.7% and 4.9%, respectively, while the Nasdaq rose 5.2%. This was the best week since June for all three major averages.
The improvement came despite a mixed bag of corporate earnings reports, despite the 10-year Treasury yield rising to its highest level since 2008.
“I think the market was technically a little oversold last weekend. As we’ve seen many times in the past, when things go negative, it becomes a contrarian indicator for a bounce,” Randy said. Frederick is the Managing Director of Trading and Derivatives at the Schwab Center for Financial Research.
“But like all the other bounces we’ve had, it’s not well sustained. … A bounce today doesn’t necessarily mean it’s going to continue into next week. If it does, I doubt it’s going to last for more than a day or two,” Frederick added.
Bank stocks were a bright spot on Friday, with Goldman Sachs adding 4.6% and JPMorgan Chase adding 5.3%.
Earnings reports report limited gains to the market. Dow components American Express and Verizon fell 1.5% and 4.5%, respectively, after their quarterly reports. In tech, social media giant Snap fell 28% after reporting quarterly revenue of $1.13 billion, which fell short of expectations.
Treasury yields fell after a Friday morning high Report from the Wall Street Journal Some central bank officials worry about overdoing big rate hikes. That report also seemed to lift stocks.
Aggressive rate hikes by the Fed have been a major factor in stocks falling into this year’s bear market, and traders continue to raise their estimates of where the Fed will stop.
“We really need a Fed pause. They’re not outright denying future rate hikes, but they’re going to say every meeting is live, and if the data goes our way we’ll have to do a lot more ‘we won’t after the first half of ’23,'” said Barry Bannister, chief equity strategist at Stifel. “Squawk on the Street,” he said.
