Categories: world

S & P 500 skips 1% as Wall Street rebounds from Thursday's losses, Procter & Gamble surges

"The reason for the economy is still in place and the results are still good," said Quincy Krosby, Marketing Manager…

“The reason for the economy is still in place and the results are still good,” said Quincy Krosby, Marketing Manager at Prudential Financial. “The market will not get immediate recovery, it tends to bounce.”

American Express, PayPal and Skechers all published on Thursday’s results that peaked analysts expectations. Their shares increased by 2.6 percent, 9.3 percent and 15.4 percent respectively.

The company’s win season has a strong start. With more than 15 percent of S & P 500 companies reported, 83 percent has exceeded analysts expectations, according to FactSet.

These movements followed a divestment during the previous session, as investors worried about rising interest rates, geopolitical tensions and a potential slowdown in the world economy. On Thursday, Dow dropped more than 300 points, after a blur in Chinese stocks. The story shows that when stocks expire in China, the US market is rarely immune because major exporters suffer.

Overnight China said the economy grew by 6.5 percent in the third quarter, disappearing expectations. Chinese stocks, however, increased as officials took measures to support the market, and it was to help the sentiment in the United States

Despite Friday’s profits, stocks remain strong during the month. Dow and S & P 500 have fallen more than 4 percent in October, while Nasdaq is down almost 7 percent.

“This began a few weeks ago when [Federal Reserve] President Jerome Powell said we are far from neutral,” said Brent Schutte, chief investment strategist for Northwestern Mutual Welfare Management. “What we see here is a good old fashion management.”

Schutte added that these latest repurchases are an opportunity for investors.

Spriha Srivastava
contributed to this report.

Published by