Midday Market Update: Stock Gains Hold Strong

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Stocks rose Friday, although not in an aggressive rally. Investors are weighing several economic factors.

The S&P 500 rose 0.5%, with value outperforming growth. The tech-heavy Nasdaq rose only 0.3%. The 10-Year Treasury yield rose to 0.75%. Yields rise when prices fall.

Retail sales for September rose 1.9% against varying reported estimates of around 1%. This points to the continued strength of the consumer’s recovery, as households have saved cash and benefited from benefits and government checks.

Large cap consumer discretionary was down a few tenths of a percentage point as a slightly worrisome read on consumer sentiment seems, to some, tied to household concerns over the slight uptick in the spread of the virus this fall. Meanwhile, the no-stimulus picture out of congress is threatening the speed of the economic recovery, although investors are comfortable with the ongoing pace of the economic recovery for the immediate.

Still, consumer discretionary was mixed, with some airlines up more than 1%. Starbucks  (SBUX) - Get Starbucks Corporation Report, Chipotle  (CMG) - Get Chipotle Mexican Grill, Inc. Report and McDonalds  (MCD) - Get McDonald's Corporation (MCD) Report all rose a few tenths of a percentage point, as digitally-focused consumer brands at large continue to shine.

Bank stocks rose about 0.4%, with interest rate-sensitive and economically sensitive banks like Bank of America  (BAC) - Get Bank of America Corp Report posting stronger gains than investment banks.

Manufacturing stocks rose as well. 

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