By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch) -- Following steep losses and massive
intraday swings over the past five days the U.S. stock market is
wrapping up the week on a relative high note, with the main
benchmarks registering more than 1% gains on Friday.
Earlier in the week, investors exhibited panicky selling
behavior as concerns over global growth, volatility in oil and the
dollar, as well as fear of the spread of Ebola converged.
On Friday, stocks got a boost from upbeat earnings reports from
heavyweights, such as General Electric, Honeywell and Morgan
Stanley. Those cheery earnings reports may be just what the markets
need.
The S&P 500 (SPX) gained 30 points, or 1.6%, to 1,892.82.46,
led by gains in industrials and energy sectors. The Dow Jones
Industrial Average (DJI) jumped 300 points, or 1.7%, to
16,410.67.
To be sure. those benchmarks are still poised to finish the week
lower after a withering week of trading action.
Meanwhile, the Nasdaq Composite (RIXF) rose 63 points, or 1.5%,
to 4,263.97 and was on track to finish the week with a modest
gain.
The Russell 2000 rose 5 points, or 0.4% to 1,091 and was
underperforming its large-cap counterpart on Friday, but over the
week it outperformed the S&P 500. Indeed, the small-cap index
was on track for a 3.6% weekly gain.
J.C. Parets, founder and president of Eagle Bay Capital, warns
not to be fooled by the snapback, asserting that carnage the
equities markets experienced isn't nearly over. "We get the most
vicious rallies during market declines," he cautions in an
interview.
Thursday's sharp gains came after a choppy session on Wall
Street on Thursday, when the benchmarks fell around 1% at the open.
However, they recovered throughout the day, helped by comments from
President of the St. Louis Federal Reserve James Bullard, who
raised the possibility of extending bond purchases. Bullard isn't a
voting member this year of the rate-setting Federal Open Market
Committee.
Boston Fed President Eric Rosengren told CNBC on Friday he does
not expect the U.S. economy to need another round of quantitative
easing, but added that he would not rule out that possibility.
Earnings: Several heavyweights reported results ahead of the
opening bell. General Electric Co. (GE) shares rose 3.3% after
third-quarter earnings topped market expectations.
Defense contractor Honeywell International Inc. (HON) lifted its
low end of its 2014 per-share outlook, after third-quarter earnings
beat expectations, sending the shares 4% higher.
Morgan Stanley (MS) gained 2.6% after the bank reported
third-quarter earnings that topped forecasts.
Movers and shakers: Urban Outfitters Inc. (URBN) slid 13% after
the retailer late Thursday warned weaker sales trends first
reported in September are continuing.
Google Inc. (GOOGL) (GOOG) shares fell 1.4% after the Internet
giant late Thursday reported third-quarter below forecasts. Revenue
rose to $16.52 billion from $13.75 billion.
SanDisk Corp. (SNDK) slumped 2.5%, after the memory-chip maker
on Thursday reported a drop in profit.
(Read more about the day's notable stocks in Movers &
Shakers column:
http://www.marketwatch.com/storyno-meta-for-guid.)
Data:Construction started on new U.S. homes rose 6.3% in
September, bouncing up after a sizable August drop, led by growth
for volatile apartment building, according to government data
released Friday.
Also Friday, markets will get a fresh reading on consumer
sentiment, which will be released at 9:55 a.m.
Other markets: European markets rebounded after the recent
market slide, with the Stoxx Europe 600 index up for the first time
in nine sessions.
Asian stocks closed mixed, with Japan's Nikkei 225 down
1.4%.
Oil markets took a breather on Friday after crude futures
touched below $80 a barrel for the first time since June 2012 on
Thursday. Metals were mixed, while the dollar fell against most
major currencies.
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