Stocks ended higher again on
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stocks are climbing again on Friday, as encouraging reports on the economy and corporate profits help
The S&P 500 was 0.8% higher in afternoon trading. The Dow Jones Industrial Average was up 401 points, or 1.2%, at 35,314, as of
Leading the way for the S&P 500 was freight deliverer
They dovetailed with a report showing people spent much more at
Friday's gain follows up on a 1.7% jump for the S&P 500 Thursday, its best day since March, which was driven by stronger-than-expected earnings reports and encouraging data on the job market. The S&P 500 is on track for a 1.9% gain for the week and its best weekly performance since July.
It's a turnaround from a shaky few weeks, when the S&P 500 fell as much as 5.2% from its record set on
Earnings reporting season has just begun, but early indicators are encouraging. All but one of the 19 companies in the S&P 500 that reported quarterly results this week topped analysts' profit forecasts. Such strength is crucial after climbing interest rates heightened worries that stock prices had grown too expensive relative to profits.
The stronger-than-expected reports on the economy also help calm chatter about “stagflation," which is the feared marriage of a stagnating economy and high inflation.
Of course, all is not clear yet. A report on Friday showing consumer sentiment was weaker than expected amid inflation worries helped limit the market's gains.
Still, stocks of companies whose profits are most closely tied to the strength of the economy, including retailers, automakers and travel-related businesses, were leading the way higher Friday. Amazon rose 2.8%,
Other than financial companies, which benefited from the better-than-expected profit reports from several big-name banks, industrial businesses and energy producers were also among the strongest gainers.
Higher Treasury yields in recent weeks have been holding back technology and other high-growth stocks recently. When bonds are paying more in interest, investors aren't as willing to wait as long a time for big profit growth expectations to come to fruition or to pay as high prices for them.
Tech stocks in the S&P 500 rose a 0.8% Friday, less than the rest of the market, while the communication-services sector that includes many internet companies slipped 0.1%.
Stock markets overseas also notched gains. In
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The price of benchmark
AP Business Writer
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