Stocks end higher, giving S&P 500 its best week since July

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Wall Street added to its recent gains Friday as stocks closed higher, driving the Standard & Poor's 500 to its best week since July.

Wall Street added to its recent gains Friday as stocks closed higher, driving the Standard & Poor’s 500 index to its best week since July.

rose 3.8% and Alcoa surged 15.2% after it beat earnings expectations and announced a dividend payment and buyback of its stock.than Wall Street expected. Sales at stores, restaurants and other retail establishments rose 0.7% from August instead of falling, as economists forecast.“We saw retail sales this morning come in pretty strong,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Earnings reporting season has just begun, but early indicators are encouraging. All but one of the 19 companies in the S&P 500 that reported quarterly results this week topped analysts’ profit forecasts. Such strength is crucial after climbing interest rates heightened worries that stock prices had grown too expensive relative to profits.The owner of Kip’s Toyland thinks he’s outsmarted the global supply chain gridlock that is threatening the holiday shopping season.

Still, stocks of companies whose profits are most closely tied to the strength of the economy — including retailers, automakers and travel-related businesses — led the way higher Friday. Amazon rose 3.3%, Tesla added 3% and Marriott International gained 3.1%. Treasury yields also rose after the much-stronger-than-expected report on retail sales. The yield on the 10-year note climbed to 1.57% from 1.52% late Thursday.

Tech stocks in the S&P 500 fared a little better Friday, matching the broader market with a 0.8% gain. The communication-services sector that includes many internet companies slipped 0.1%.

 

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