It was a very positive week for stocks as the S&P 500 and Dow Jones Industrial Average closed 3% higher to 2,259 and 19,756, respectively. The Nasdaq finished 3.5% higher to 5,444. Treasury Bonds declined, while High-Yield Bonds made solid gains.
Technology and Financial stocks logged strong increases, led by Bank of America (BAC), Alphabet (GOOGL), and Goldman Sachs (GS), to name a few. Left out of last week's big rally were Healthcare and Defense stocks, with names like Pfizer (PFE), Express Scripts (ESRX), Northrup Grumman (NOC), and Lockheed Martin (LMT) closing lower
In company specific news, Amazon (AMZN) announced its new retail store format, called "Amazon Go". The idea incorporates mobile, artificial intelligence, and more to allow customers to buy products without going through a checkout line. Next, the EU cleared Microsoft's (MSFT) acquisition of LinkedIn (LNKD) and the deal closed on Thursday. Finally, Casey's General Store (CASY) and Broadcom (AVGO) reported earnings results, with CASY slightly disappointing investors, noting weak in-store traffic, and AVGO surpassing estimates and doubling its dividend.
Nearly 100% of S&P 500 companies have now reported earnings for Q3. According to Zacks Research, total earnings are up 3.5% y/y on revenues higher by 1.9%, with 72% coming ahead of EPS estimates and 55.6% beating revenue expectations.
Next week, investors will look at the Federal Reserve's announcement on short-term interest rates. The market believes it is a near certainty that the Fed will raise rates for the second time since the expansion started. U.S. data released next week will relate to inflation and housing.