Stock Market Today: Wall Street Rises and Trims Most of the Week's Losses

Economy

By Associated Press

Published 6 months ago on

October 25, 2024

Signs marking the intersection of Broad and Walls Streets appear near the New York Stock Exchange on Oct. 1, 2024, in New York. (AP File)

S&P 500 rose 0.8% as strong earnings, led by Capital One and Deckers Outdoor, lifted investor confidence.
10-year Treasury yield fell slightly to 4.20%, though it's still elevated amid positive economic data.
Spirit Airlines surged 24% on restructuring news, while Capri Holdings tumbled 50% after a blocked Tapestry acquisition.

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NEW YORK — Stocks gained ground on Wall Street Friday as companies continued reporting mostly solid earnings.

The S&P 500 rose 0.8% in morning trading Friday. The gains have trimmed most of the indexes losses for the week.

The Dow Jones Industrial Average rose 94 points, or 0.4%, to 42,544, as of 11:09 a.m. Eastern. The Nasdaq composite rose 1.3%.

S&P 500 and Dow Falling Back

Both the S&P 500 and the Dow have been generally falling back from record highs set late last week. The market has been more cautious amid worries that stocks have become too expensive. Higher Treasury yields, which make stocks less appealing to investors, also added more pressure.

Earnings have been a key focus for investors this week. The latest round of corporate profit reports could give Wall Street a better sense of whether the high stock prices are justified.

Capital One Financial jumped 8.2% after beating Wall Street’s third-quarter financial forecasts. Ugg footwear maker Deckers Outdoor rose 13% after raising its financial forecast for the year.

Strong earnings drove gains for several other companies. Technology companies L3Harris Technologies rose 3.9% and Western Digital rose 9.1%.

More than a third of companies in the S&P 500 index have reported their latest quarterly financial results. Most of the results have beat analysts’ forecasts.

Outside of earnings, Spirit Airlines jumped 24% after the struggling budget airline said it will will cut jobs and sell airplanes.

Capri Holdings, owner of the Versace, Jimmy Choo and Michael Kors luxury brands, lost almost half its value after a judge halted a purchase of the company by Tapestry, which makes Coach handbags. Tapestry rose 14.9%.

The ruling came six months after the FTC sued to block Tapestry’s $8.5 billion acquisition of Capri.

Treasury yields fell. The yield on the 10-year Treasury fell to 4.20% from 4.21% late Thursday. It’s still well above its 4.08% level from late last week. The two-year Treasury yield fell to 4.05% from 4.09% late Thursday.

Yields have generally climbed following reports showing the U.S. economy remains stronger than expected. Wall Street will have more updates next week on consumer confidence, jobs and inflation.

The Fed raised its benchmark interest rate to its highest level in two decades in an effort to tame inflation back to 2%, without sinking the economy into a recession. The economy has so far managed to escape severe damage from hot inflation and high interest rates.

Economists expect a key report on consumer spending late next week, called the PCE, to show that the rate of inflation has eased to 2%. The central bank started cutting interest rates in September and economists expect another cut at its meeting in November.

Russia’s central bank on Friday raised its key interest rate by two percentage points to a record-high 21%. Moscow is trying to combat growing inflation sparked by military spending after its invasion of Ukraine.

In Europe Germany’s DAX rose 0.2% and France’s CAC 40 lost 0.1%. Britain’s FTSE 100 edged 0.1% lower. Stocks were mixed in Asia.