(Bloomberg) -- Stocks notched their best week since July as solid corporate earnings and a surprise increase in retail sales spurred a rally in companies that are more likely to benefit from an economic rebound. Treasuries fell.
Equities rose on Friday even after data showing that consumer sentiment dropped in early October. Retailers and banks led gains in the S&P 500. Goldman Sachs Group Inc. climbed after posting a surge in its trading business, while broker Charles Schwab Corp. jumped on record earnings. Trucking giant J.B. Hunt Transport Services Inc. and Alcoa Corp. -- the biggest U.S. aluminum producer -- also soared on better-than-estimated results.
“We believe that being long equities is the best course of action, and that cyclical stocks such as financials, industrials, energy and materials are positioned for further gains,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “Utilities and consumer staples are going to face headwinds in the form of higher interest rates and inflation.”
Goldman Sachs Chief Executive Officer David Solomon said that inflation, particularly in wages, remains top of mind among corporate leaders and shareholders. His comments follow similar concerns voiced this week by other CEOs including Bank of America Corp.'s Brian Moynihan and Morgan Stanley's James Gorman.
The world's most crucial metals continued on a breakneck surge as energy shortages forced more production cuts and piled pressure on manufacturers -- fueling concerns about inflation. Brent oil hovered near $85 a barrel amid a global power crunch that has seen prices jump.
Some other corporate highlights:
- Cryptocurrency-exposed stocks like Marathon Digital Holdings Inc. and Riot Blockchain Inc. jumped. The Securities and Exchange Commission is poised to allow the first U.S. Bitcoin futures exchange-traded fund to begin trading, according to people familiar with the matter.
- Johnson & Johnson rose as its Covid-19 vaccine booster gained a key recommendation from advisers to U.S. regulators that brings the additional shot a step closer to clearance.
- Virgin Galactic Holdings Inc. is pushing the start of commercial flights further into next year after rescheduling a test flight, disappointing investors with the unexpected delay to its space tourism business plans.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.7% as of 4 p.m. New York time
- The Nasdaq 100 rose 0.6%
- The Dow Jones Industrial Average rose 1.1%
- The MSCI World index rose 0.9%
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was little changed at $1.1606
- The British pound rose 0.5% to $1.3746
- The Japanese yen fell 0.5% to 114.23 per dollar
Bonds
- The yield on 10-year Treasuries advanced six basis points to 1.57%
- Germany's 10-year yield advanced two basis points to -0.17%
- Britain's 10-year yield advanced six basis points to 1.11%
Commodities
- West Texas Intermediate crude rose 1.1% to $82.23 a barrel
- Gold futures fell 1.6% to $1,768.70 an ounce
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