Market News

U.S. stocks ended mixed on Friday as investors weighed in the increase in oil prices, potential Fed rate cuts, and recent Q3 earnings reports. The S&P 500 and the Dow closed lower, while the Nasdaq finished in positive territory.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) fell 0.6% or 259.96 points to close at 42,114.40. 8 components of the 30-stock index ended in negative territory, while 22 ended in positive.

The tech-heavy Nasdaq Composite advanced 103.12 points or 0.6% to 18,518.61. This marked an all-time high in three months.

The S&P 500 declined 0.03%, or 0.79 points, to end at 5,808.12. Eight broad sectors of the benchmark index closed in the red, while three ended in the green. The Utilities Select Sector SPDR (XLU), the Financials Select Sector SPDR (XLF), and the Consumer Staples Select Sector SPDR (XLP) fell 1.5%, 1.2%, and 0.8%, respectively.

The fear-gauge CBOE Volatility Index (VIX) increased 6.6% to 20.33. A total of 11.54 billion shares were traded on Friday, higher than the last 20-session average of 11.28 billion. The S&P 500 posted 30 new 52-week highs and two new lows, while the Nasdaq Composite recorded 78 new highs and 87 new lows.

Crude Prices Climb as Investors Anticipate Fed Rate Cut

On Friday, the price of Brent crude futures went up by 2. 25 %, reaching $ 76. 05 per barrel, while U.S West Texas Intermediate (WTI) crude saw a rise of 2. 27 % to close at $ 71. 78 per barrel. Both indicators closed the week with gains of 4 %.

Meanwhile, investors are eagerly anticipating employment data for this week to gain insights into the Federal Reserve’s future policy decisions. Many in the market are placing bets toward a 25-basis point interest rate reduction, during the Feds November meeting based on CME Group’s FedWatch Tool predictions showing a 95.1% probability.

Strong Earnings

Deckers Outdoor Corporation DECK reported fiscal second-quarter 2024 adjusted earnings of $1.59 per share, beating the Zacks Consensus Estimate of $1.22 per share. This footwear company generated total revenues of $1.31 billion, beating the Zacks Consensus Estimate by 9.58%.

Capital One Financial Corporation COF reported third-quarter 2024 adjusted earnings of $4.51 per share, outpacing the Zacks Consensus Estimate of $3.70 per share. The financial services holding company generated total revenues of $10.01 billion, surpassing the Zacks Consensus Estimate by 2.01%.

Consequently, shares of Deckers Outdoor Corporation and Capital One Financial Corporation gained 10.6% and 5.2%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

New Orders for Manufactured Goods Missed Estimates

New orders for manufactured goods for September decreased 0.8%, missing the consensus estimate of 0.3%. This follows a 0.8% decrease in August.

Consumer Sentiment Rises in October

The University of Michigan reported that consumer sentiment for October had come in at 70.5, higher than the 70.1 it had registered in September.

Weekly Roundup

Last week, the Nasdaq Composite rose 0.16%, while the S&P 500 fell 0.96% and the Dow Jones Industrial Average declined 2.68%.

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