Dow pops more than 200 points on Friday to cap the best week for stocks so far this year:

Fri, Nov 3 2023 4:13 PM EDT

Stocks close higher Friday

Fri, Nov 3 2023 3:03 PM EDT

S&P 500 is headed for first 5-day win streak since June

The S&P 500 is higher for a fifth day for the first time since June 15, 2023. The broader index is up by more than 6% this week.

Real estate and financials outperformed, up by more than 9% and 7% this week, respectively. Both are sectors that are down on the year after getting hit by higher interest rates.

— Sarah Min

Fri, Nov 3 2023 2:25 PM EDT

Dow heads for best week of the year, boosted by Goldman Sachs

The Dow is poised to end the week up more than 5%, thanks in part to a notable jump in Goldman Sachs shares.

Shares of the bank are on track to finish the week 13.2% higher, making it the top performer within the index. If that holds through Friday’s close, it would mark the best week for the stock since April 2020, when it climbed 25.4% in one week.

The stock is also slated for its fifth straight winning session with a gain of nearly 5% on Friday.

Nike was the next top performer in the blue-chip average, advancing more than 9%. All 30 stocks in the index are on track to end the week higher.

With a gain of 4.4%, the Dow is on pace to post its best week in more than a year. The last time it advanced more in a week was October 2022, when the index added 5.7%.

See Chart…

The Dow over the last 5 days

Fri, Nov 3 2023 2:04 PM EDT

Morgan Stanley takes Eli Lilly price target to Street high, saying shares offer ‘best growth in industry’

Eli Lilly appears to be doing everything it can to ramp up supply of Mounjaro ahead of its expected Food and Drug Administration approval for obesity by the end of this year. With the label expansion on track and boosted manufacturing capacity, Morgan Stanley lifts its price target on the stock to $722, which is a high among analysts covering the stock. Its prior target was $673.

The revised target implies 24% upside from Thursday’s close. Lilly shares, which are off about 1.5% in trading Friday, have already gained 57% year to date.

Analyst Terence Flynn said he assumes Lilly shares trade at a higher multiple than its historic average given it offers the “best growth in industry.”

“LLY has the most robust new product cycle (and hence growth) outlook in Pharma as the company could launch five new drugs over the next two years (across large end markets such as diabesity, Alzheimer’s disease, cancer and immunology),” Flynn wrote in a research note. He expects these launches will boost its revenue growth by more than 50% from 2022 to 2025.

—Christina Cheddar Berk

Fri, Nov 3 2023 1:47 PM EDT

Long-term Treasury ETF extends November rally

The iShares 20+ Year Treasury Bond ETF (TLT) is on track for its third straight positive day as Treasury yields decline.

The TLT was up 1.2% in afternoon trading, meaning that the fund was already up more than 5% in November, which kicked off with Wednesday’s Fed meeting.

TLT saw heavy inflows and trading activity in October, as some investors appeared to be betting on a rebound for the fund after yields rose above 5%.

— Jesse Pound

Fri, Nov 3 2023 12:34 PM EDT

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading.

Expedia — Shares surged 17% during midday trading Friday, a day after the vacation booking platform delivered a stronger-than-expected earnings report for the third quarter. Expedia posted adjusted earnings of $5.41 per share on $3.93 billion in revenue. Analysts polled by LSEG forecasted earnings of $4.93 per share and $3.86 billion in revenue.

Apple — Shares dipped just shy of 1%. On Thursday, the tech giant posted its fourth consecutive fall in quarterly sales and provided a muted outlook for revenue in the December quarter, which is historically its strongest quarter. That overshadowed the fact that the company beat analysts’ expectations on both lines in the fiscal fourth quarter.

Paramount Global — The media conglomerate stock climbed 12% after reporting a third-quarter earnings beat on the top and bottom line. On Thursday, the company reported an adjusted 30 cents per share on $7.13 billion in revenue, while analysts polled by LSEG forecast 10 cents and $7.10 billion.

Read the full list here.

— Brian Evans

Fri, Nov 3 2023 11:52 AM EDT

Here’s where the jobs are — in one chart

The October jobs report was led by gains in health care and social assistance as well as government hiring.

Manufacturing was a weak point, however, as the auto worker strikes contributed to a loss of more than 30,000 jobs.

Check out more analysis on job growth by sector here.

— Jesse Pound

Fri, Nov 3 2023 11:17 AM EDT

Goldman Sachs chief economist says jobs data reaffirms outlook that Fed is done hiking interest rates

Friday’s jobs report coming in below expectations bolsters the argument that the Federal Reserve is done raising interest rates, said Goldman Sachs chief economist Jan Hatzius.

“I thought it was broadly weaker than what we expected,” Hatzius said of the report on CNBC’s “Squawk on the Street.” But, “I don’t think it was weak in a very concerning way.”

Hatzius said the print supported the argument of those expecting that the central bank was done increasing interest rates in the current monetary policy cycle following its meeting earlier in the week. While he said Goldman isn’t expecting the Fed to cut rates until the fourth quarter of next year, he said the central bank could starting pulling them down if the economy weakens more sharply before then.

“It was a softer report that I think underscores the message that the market took out of the FOMC meeting this week — namely, that the Fed is very likely done hiking,” he said, using the acronym for the Federal Open Market Committee.

— Alex Harring

Fri, Nov 3 2023 11:17 AM EDT

Fed’s Barkin doesn’t want to ‘prejudge’ the need for more rate hikes

Richmond Federal Reserve President Thomas Barkin told CNBC on Friday that he’s not sure whether more interest rate hikes will be needed to control inflation.

“I’m not going to prejudge. I value the optionality of seeing what we’re going to see in the data, and in particular we’re going to get two inflation reports between now and the next meeting, and I think that’s what’s going to matter to me,” he said on “Squawk on the Street.”

“Let’s see if the things that I think I believe today are still true or not,” added Barkin, who is not a voting member this year of the rate-setting Federal Open Market Committee but will get to vote in 2024.

—Jeff Cox

Fri, Nov 3 2023 10:56 AM EDT

Regional bank index heads for best week since 2020

The SPDR S&P Regional Banking ETF (KRE) is on pace for its best week in around three years.

The fund is on track to see its fifth straight positive day on Friday, which would be the first streak of that length since July.

Those gains have put index is up nearly 13% this week. If that holds through Friday’s close, it would mark the best since since November 2020, when the ETF climbed 14.1%.

PacWest and Western Alliance have led the fund higher this week, with each poised to end up more than 20%. Every holding in the ETF is on pace to close the week higher.

See Chart…

The ETF over the last 5 days

— Alex Harring, Gina Francolla

Fri, Nov 3 2023 10:08 AM EDT

U.S. services sector grows at slightly slower-than-expected pace

The ISM services PMI came in at 51.8, showing the sector was still expanding last month, albeit at slightly slower-than-expected pace. Economists polled by Dow Jones expected a print of 53.

“The services sector continues to slow, with decreases in the Business Activity and Employment indexes,” Anthony Nieves, chair of the Institute for Supply Management, said in a statement. “Sentiment among Business Survey Committee respondents’ comments is mixed, with some optimistic about the current steady and stable business conditions and others concerned about such economic factors as inflation, interest rates and geopolitical events.”

— Fred Imbert

Fri, Nov 3 2023 9:31 AM EDT

Stocks open higher Friday

The major averages opened higher Friday.

The Dow Jones Industrial Average jumped 175 points, or 0.5%. The S&P 500 rose 0.5%, while the Nasdaq Composite added 0.4%.

— Sarah Min

Fri, Nov 3 2023 8:36 AM EDT

U.S. jobs grow at slower-than-expected pace in October

The Labor Department said Friday that the U.S. economy added 150,000 in October. That’s slightly below a Dow Jones forecast of 170,000.

Average hourly earnings, a closely watched data point in the report for inflation trends, rose 0.2% last month. That’s also a smaller-than-expected increase. The unemployment, meanwhile, climbed to 3.9% versus a forecast of 3.8%.

— Fred Imbert

Fri, Nov 3 2023 8:16 AM EDT

See the stocks moving before the bell

These are some of the stocks making notable moves in Friday premarket trading:

Fortinet — Shares dropped 23.1% after the cybersecurity company missed revenue expectations and gave a weak outlook for the current quarter. Block — The financial technology stock surged more than 15% in premarket trading on Friday, a day after the company reported third-quarter earnings that surpassed analyst estimates.Bill Holdings — Shares fell more than 30% after the software company lowered its guidance for earnings and revenue for the full fiscal year.

See the full list here.

— Alex Harring

Fri, Nov 3 2023 7:23 AM EDT

Restaurant Brands’ shares rise after earnings beat

Restaurant Brands International’s shares rose 1% in premarket trading. The fast food company behind Burger King reported third-quarter earnings on Friday that topped estimates, though revenue fell short of expectations.

The company posted adjusted earnings of 90 cents per share, more than the 86 cents expected by analysts polled by LSEG, formerly known as Refinitiv. Revenue came in at $1.84 billion, lower than the anticipated $1.87 billion.

See Chart…

Restaurant Brands International

— Sarah Min, Amelia Lucas

Fri, Nov 3 2023 6:25 AM EDT

Year-end rally coming but won’t last long, BCA Research says

Peter Berezin of BCA Research noted that, while stocks are poised to rise as 2023 wraps up, that momentum will be short-lived.

“We are approaching another phase transition from boom to bust. Investors should underweight stocks and overweight bonds on a 12-month horizon,” the firm’s chief global strategist said. “Stocks are poised to rally into year-end but will fall again in 2024 as the global recession begins.”

Berezin noted the U.S. economy is “nearing another phase transition. Labor demand is dropping, as evidenced by a shrinking jobs-workers gap.”

“If current trends prevail, the labor market will reach the flat portion of the labor supply curve by the second half of next year,” he said. “At that point, workers who lose their jobs will struggle to find new ones. Unemployment will start rising. A recession will ensue.”

— Fred Imbert

Thu, Nov 2 2023 10:30 PM EDT

China services activity rebound slightly in October: Caixin survey

China’s service sector expanded at a slightly faster pace in October, according to the Caixin services survey.

The purchasing managers index came in at 50.4, just above September’s reading of 50.2. Caixin wrote that this pointed to a sustained rise in service sector business activity, but the reading meant only a marginal rate of growth overall.

China’s services sector has remained in expansionary territory for 10 straight months, according to Caixin.

— Lim Hui Jie

Thu, Nov 2 2023 9:46 PM EDT

Hong Kong business activity contracts in October to near one-year low

Hong Kong’s private sector activity contracted further in October as new business, including that from mainland China continues to fall, according to a survey by S&P Global.

The seasonally adjusted S&P Global Hong Kong Purchasing Manager’s Index fell to 48.9 in October from 49.6 in September. It was its lowest reading since November 2022 and marked the fourth straight month of contraction.

A PMI reading below 50 is viewed as a contraction.

S&P Global said hiring activity also decreased in Hong Kong, while input cost inflation climbed further above that of selling prices.

— Shreyashi Sanyal

Thu, Nov 2 2023 6:15 PM EDT

How extensive and broad was Thursday’s stock market rally? Very.

Ninety percent of the entire volume of shares that changed hands on the New York Stock Exchange on Thursday advanced in price. Less than 10% declined. On the Nasdaq Stock Market, some 82% of volume was higher while less than 18% was lower in price.

Advancing stocks outnumbered declining issues by almost 9-1 on the New York Stock Exchange versus about 7-2 on the Nasdaq. Total volume of shares traded on both markets was about 15% above the past month’s daily average.

Seven of the main 11 stock sectors climbed more than the S&P 500’s 1.89% gain, led by energy and real estate (both up 3.1%), and financials (ahead 2.4%). Laggards were led by communication services (up 0.9%), consumer staples (up 1.3%) and health care (higher by 1.6%).

In addition to the boost to stocks that stemmed from retreating Treasury yields, prices were also lifted by a weaker dollar. The DXY dollar index fell 0.66% Thursday.

— Scott Schnipper

Thu, Nov 2 2023 6:06 PM EDT

Stock futures open lower

Stock futures opened lower Thursday as Apple slipped in extended trading after reporting fiscal fourth-quarter results.

Futures tied to the Nasdaq 100 fell 0.3%, while S&P 500 futures declined 0.1%. Dow Jones Industrial Average futures pulled back 8 points, or 0.02%.

— Brian Evans

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