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Stocks - Dow Makes Late Charge to End Sharply Higher as Tech Rallies

Published 10/12/2018, 03:51 PM
Updated 10/12/2018, 04:30 PM
© Reuters.  The Dow closed higher on Friday.

Investing.com - The Dow closed higher on a volatile Friday that saw the index surge at the open, lose all its gains, and then rally into the close led by tech stocks.

The Dow Jones Industrial Average rose 1.15% after turning negative intraday following session high of 25,467. The S&P 500 rose 1.42%, while the Nasdaq Composite rose 2.29%.

Following the two-day carnage on Wall Street, bargain-seeking investors piled into tech heavyweights such as Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL), lifting the broader market higher as earnings season got underway in earnest.

Financials lagged the move higher to remain rooted in correction territory, defined as a 10% drop from a recent peak, as investors digested mixed earnings from major Wall Street banks.

JPMorgan Chase (NYSE:JPM) fell 1% despite delivering quarterly earnings and revenue that topped Wall Street expectations. While shares of Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) rose despite reporting mixed results.

Analysts have suggested that the start of earnings season could help shift investor focus to corporate fundamentals and away from rising bond yields, which many have attributed to the recent rout on Wall Street.

Meanwhile, energy stocks erased early-session losses, supporting the broader market, as oil prices settled higher despite concerns about robust oil supply.

The rally in stocks in the wake of a two-day selloff has divided opinion on Wall Street.

Barclays said it expected that ETF investors and volatility-target funds would reduce exposure by billions of dollars "over the next few days." While Pictet Asset Management downplayed the prospect of further selling, citing "healthy" economic conditions.

On the trade front investors digested comments from Treasury Secretary Steven Mnuchin who said in an interview with CNBC that President Donald Trump could meet with Chinese President Xi Jinping at the G-20 summit if there was an opportunity to make meaningful progress on trade talks.

In corporate news, Ford Motor (NYSE:F) closed 2% lower after reporting sales in China fell 43% in September from the same month a year earlier, owing to tightening in consumer lending and general cautiousness among Chinese consumers.

General Electric (NYSE:GE), meanwhile, fell 3% after the after the conglomerate pushed back the release of third-quarter results by five days to Oct. 30 to allow recently-appointed Chief Executive Larry Culp an opportunity to complete his review of the business.

Top S&P 500 Gainers and Losers Today:

Netflix (NASDAQ:NFLX), Autodesk (NASDAQ:ADSK) and Take-Two Interactive (NASDAQ:TTWO) were among the top S&P 500 gainers for the session.

PNC Financial (NYSE:PNC), General Electric (NYSE:GE) and Freeport-McMoran (NYSE:FCX) were among the worst S&P 500 performers of the session.

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