Stocks have moved mostly higher in morning trading on Friday, partly offsetting the weakness seen in the previous session. The major averages have all moved to the upside after ending Thursday’s trading firmly in negative territory.
The major averages have pulled back off their best levels in recent trading but are currently holding on to gains. The Dow is up 208.46 points or 0.7 percent at 29,286.63, the Nasdaq is up 53.41 points or 0.5 percent at 11,763.00 and the S&P 500 is up 24.82 points or 0.7 percent at 3,561.83
The rebound on Wall Street partly reflects a positive reaction to earnings news from big-name companies like Cisco (CSCO) and Disney (DIS).
Shares of Cisco have surged up by 5.9 percent after the networking giant reported fiscal first quarter results that beat expectations on both the top and bottom lines.
Disney is also posting a notable gain after the entertainment giant reported a much narrower than expected fiscal fourth quarter loss on revenues that exceeded analyst estimates.
Shares of DraftKings (DKNG) have also moved sharply higher after the sports betting company reported better than expected third quarter results and raised its full-year revenue guidance.
On the other hand, shares of Revlon (REV) have come under pressure after the cosmetics maker reported a third straight quarterly loss on a 20 percent drop in revenue.
The major averages gave back some ground following the release of a report from the University of Michigan showing an unexpected decrease in U.S. consumer sentiment in the month of November.
The preliminary report said the consumer sentiment index fell to 77.0 in November after rising to a seven-month high of 81.8 in October. The pullback came as a surprise to economists, who had expected index to inch up to 82.0.
“The outcome of the presidential election as well as the resurgence in covid infections and deaths were responsible for the early November decline,” said Surveys of Consumers chief economist Richard Curtin
“Interviews conducted following the election recorded a substantial negative shift in the Expectations Index among Republicans, but recorded no gain among Democrats,” he added. “It is likely that Democrats’ fears about the covid resurgence offset gains in economic expectations.”
Airline stocks have shown a strong move back to the upside in morning trading, driving the NYSE Arca Airline Index up by 3.4 percent. The index is rebounding after plunging by 7.4 percent over the two previous sessions.
Substantial strength has also emerged among energy stocks, which are regaining ground despite a decrease by the price of crude oil. Crude for December delivery is sliding $0.75 to $40.37 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 3.2 percent, the NYSE Arca Natural Gas Index is up by 3 percent and the NYSE Arca Oil Index is up by 2.8 percent.
Housing, networking and computer hardware stocks are also seeing considerable strength on the day, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan’s Nikkei 225 Index fell by 0.5 percent, while China’s Shanghai Composite Index declined by 0.9 percent.
Meanwhile, the major European markets are turning in a mixed performance on the day. While the U.K.’s FTSE 100 Index is down by 0.2 percent, the German DAX Index and the French CAC 40 Index are up by 0.2 percent and 0.3 percent, respectively.
In the bond market, treasuries are showing a lack of direction following the notable rebound seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 0.893 percent.
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