U.S. stocks ended higher on Friday, extending their biggest weekly percentage gains of the year as worries of an economic downturn eased and investors focused on the Jackson Hole Economic Symposium next week.
Market Snapshot
The Dow Jones Industrial Average rose 96.70 points, or 0.24%, to 40,659.76, the S&P 500 rose 11.03 points, or 0.20%, to 5,554.25 and the Nasdaq Composite rose 37.22 points, or 0.21%, to 17,631.72.
Market Movers
Applied Materials reported fiscal third-quarter earnings and revenue that beat Wall Street estimates after the stock market closed Thursday. Chief Executive Gary Dickerson said in the earnings release that “the race for AI leadership is fueling demand.” The chip-equipment maker also said it expects fourth-quarter earnings to be between $2 a share and $2.36 a share, while Wall Street expected $2.14 a share. The stock fell 1.9%.
H&R Block stock gained 12%. The tax-prep company reported fiscal fourth-quarter earnings and revenue that beat Wall Street expectations. Management also announced a 17% increase in its quarterly dividend to 38 cents per share.
B. Riley Financial surged 16% to $5.85 after Bryant Riley, co-chief executive officer and the largest stockholder of the financial servicer, offered to acquire all of the common stock he doesn’t already own for a purchase price of $7 per share.
Fox stock moved 1.3% higher after an analyst at Wells Fargo double-upgraded shares to Overweight from Underweight.
Cisco Systems stock rose 1.9% after an analyst at HSBC upgraded shares to Buy from Hold. On Thursday evening, the networking company posted fiscal fourth-quarter earnings that beat Wall Street estimates. Chief Executive Chuck Robbins said in the earnings release that the company saw “steady customer demand with order growth across the business.”
Shares of Rivian Automotive slipped 4% after a report said the company has paused production of the electric commercial van it makes for Amazon.com, amid a parts shortage.
American depositary receipts of JD.com gained 8.5%. A J.P. Morgan analyst upgraded shares to Overweight from Neutral. This came after the e-commerce company reported that its June quarter net income rose 92% from a year ago.
Nike stock rose 0.9% after an analyst at Williams Trading double upgraded shares of the athletic clothing maker to Buy from Sell.
Estée Lauder tickd down 0.2%. An analyst at BofA Securities downgraded the cosmetics company to Neutral from Buy.
Market News
Gold Rallies to Record High on Softer Dollar, Rate-Cut Expectations
Gold topped $2,500 an ounce for the first time, bolstered by hopes the US Federal Reserve is edging closer to cutting interest rates.
Spot bullion climbed as much as 2.2% Friday, exceeding the previous record set last month, as a disappointing reading on the US housing market reinforced expectations of fast and deeper cuts by the Fed. Lower rates generally are positive for gold as it pays no interest.
Powell Huddles With Bank CEOs to Avoid Long Legal Fight Over Capital Plan
Federal Reserve Chair Jerome Powell recently attended a closed-door meeting with a group of big-bank CEOs, encouraging them to work with the Fed to avoid a years-long legal battle over the Biden administration’s landmark capital proposal.
US Consumer Sentiment Rises in August; Inflation Expectations Steady
U.S. consumer sentiment rose in August, driven by developments in the race for the White House, while inflation expectations remained unchanged over the next year and beyond, a survey showed on Friday.
The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 67.8 this month, compared to a final reading of 66.4 in July. Economists polled by Reuters had forecast a preliminary reading of 66.9.
