TLDR:
- Stock markets rose Friday morning with S&P 500 up 0.8%, Dow Jones up 0.4%, and Nasdaq up 1.3%
- Treasury yields dropped to 4.19%, easing from a three-month high of 4.25%
- Markets still headed for weekly losses amid Federal Reserve uncertainty
- Major tech earnings coming next week from five “Magnificent Seven” companies
- Notable stock movements: Deckers +12%, Capri -47%, Booz Allen +13%, Capital One +9%
Stock markets demonstrated positive momentum on Friday morning, with major indices posting gains as Treasury yields retreated from recent highs. The S&P 500 advanced 0.8% to 5,852.26, while the Dow Jones Industrial Average moved up 0.4%. The tech-heavy Nasdaq Composite showed the strongest performance, rising 1.3%.
The day’s upward movement came as the benchmark 10-year Treasury yield dropped to 4.19%, pulling back from Wednesday’s three-month peak of 4.25%. This easing in yields provided some relief to investors who had been concerned about rising rates.
Despite Friday’s gains, markets remained on track for weekly losses. The pressure on stocks earlier in the week stemmed from uncertainty surrounding the Federal Reserve’s future interest rate decisions, leading to volatile trading sessions.
Individual stocks showed notable movements during morning trading. Deckers Outdoor surged more than 12% after reporting strong earnings and raising its annual sales forecast. The company’s Hoka brand saw sales increase by over 35%, while UGG brand sales grew by 13%.
Capri Holdings experienced a sharp decline, with shares falling 47% after a judge blocked its planned merger with Tapestry, the owner of Coach. The court cited competition concerns in the “accessible luxury” handbag market as the reason for the decision.
Government contractor Booz Allen Hamilton gained 13% following impressive second-quarter results. The company reported an 18% increase in earnings compared to the previous year and raised its fiscal 2025 outlook, projecting revenue growth up to 13%.
Capital One Financial shares rose 9% after beating earnings expectations, driven by strong performance in its credit-card and auto-lending divisions. The company’s proposed $35 billion acquisition of Discover remains under regulatory review.
Looking ahead, investors are preparing for a busy week of tech earnings. Five members of the “Magnificent Seven” are scheduled to report: Alphabet, Meta, Microsoft, Apple, and Amazon. These reports follow Tesla’s recent earnings surprise that sparked a 22% stock gain.
The market faces two major upcoming events: the November U.S. jobs report next Friday and the presidential election the following week. Both events could introduce additional market volatility.
Friday morning’s trading saw the S&P 500 reach 5,852.26, adding 42.40 points. Trading volume remained steady as investors processed the day’s movements.
Colgate-Palmolive stood out among Friday’s earnings reports, while the broader earnings season showed signs of slowing down for the week.
In the government contracting sector, Booz Allen Hamilton’s strong performance came despite industry concerns about AI technology’s impact on traditional consulting business models.
The consumer goods sector saw mixed results, with Deckers Outdoor’s strong performance contrasting with Capri’s merger-related challenges.
Capital One’s earnings beat highlighted continued strength in consumer lending, even as the banking sector faces regulatory scrutiny over consolidation attempts.
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