U.S. stocks rallied Friday as investors parsed through a medley of corporate financial results and monitored the relentless move higher across bond yields.
The S&P 500 (^GSPC) bounced 1.8%, while the Dow Jones Industrial Average (^DJI) added 580 points, or 1.9%. The technology-heavy Nasdaq Composite (^IXIC) gained 1.5%. Treasuries saw sizable moves again, with the benchmark 10-year note surging past 4.2%, a level not seen since 2008, before taking a breather.
Investors assessed a Wall Street Journal report indicating Federal Reserve officials are poised to deliver another interest rate increase of 0.75% at their meeting Nov. 1-2 and are expected to debate then whether to and how to hint at plans to green light a smaller increase in December.
Despite the past two down days, equities are poised to end the week higher after a rally Monday and Tuesday gave all three major averages a boost and helped the S&P 500 churn out a 4% gain before the index lost its momentum. The S&P 500 was up 3.1% for October as of Thursday’s close – a respite for investors after its 9.3% loss in September.
“We’re closer to the end than we are to the beginning, and the more bear market rallies we see, the fewer are left before we finally flush it all out,” SoFi’s Head of Investment Strategy Liz Young said in a note. “Still some more things to check off the list, but if or when earnings crack and just before economic data falls into contraction conditions, is when you start to pounce on market opportunities – that could be just around the corner.”
Third-quarter earnings season has so far held up better than many analysts have expected, with beats from companies like Netflix (NFLX), AT&T (T), and IBM (IBM) countered by big misses from names such as Snap (SNAP), which tumbled 31% Friday after disappointing Wall Street with its results.
The social media platform reported a fifth-straight quarterly deceleration, along with lackluster profits and a warning that sales trends in the current three-month period may get worse.
“It’s difficult to parse out how many of Snap’s issues are transitory,” Jefferies analyst Brent Thill said in a note. “The weakening macro backdrop is partially to blame for soft results, but we question how much is due to the iOS privacy issues and competitive threats.”
Snap’s declines also extended to other social media and tech peers Friday morning, with shares of Meta (META) down 3% and Twitter (TWTR) shares off by nearly 5%.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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Source: https://finance.yahoo.com/news/stock-market-news-live-updates-october-21-2022-110339121.html