Most stock indices advanced both Friday and for the week

Morale was bolstered thanks to earnings and positive economic data.

United States

Shares advanced Friday with both the Nasdaq and the S&P climbing to new record closing highs. The Nasdaq outperformed its counterparts by a wide margin. The Nasdaq jumped 2.2 percent while the S&P added 0.8 percent and the Dow Jones industrials inched up 0.1 percent. For the week, Nasdaq jumped 1.1 percent, the Dow added 0.5 percent and the S&P edged 0.2 percent higher. The strength came in reaction to upbeat earnings news from several well-known companies.

Positive sentiment was also generated in reaction to the preliminary third quarter gross domestic product report. Growth was up at an annualized rate of 3.0 percent after increasing 3.1 percent in the second quarter. Final October University of Michigan consumer sentiment improved by slightly less than the it had in the preliminary estimate. The consumer sentiment index was downwardly revised to 100.7 from 101.1 but was still up from the 95.1 final in September.

Amazon, Microsoft, Intel and Alphabet all moved higher after reporting quarterly earnings that beat estimates after the close of trading on Thursday. In addition, Merck, Chevron and Exxon Mobil reported quarterly earnings before the start of Friday’s trading that exceeded expectations. Cabot Oil & Gas, Chesapeake Energy and QEP Resources posted gains. Apple advanced after the company allayed concerns of muted demand for its 10th anniversary iPhone.

These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$7.30 to US$1,266.45. Copper futures were down 2.33 percent to US$3.10. WTI spot crude was up US$1.26 to US$53.90. Dated Brent spot crude was up US$1.14 to US$60.44. The US dollar was up against the euro, pound and Swiss franc but declined against the yen and the Canadian and Australian dollars. The Dollar Index was up 0.2 percent. The yields on both the US Treasury 30 year bond and 10 year note were down 4 basis points to 2.92 and 2.41 percent respectively.

European markets

Stock indices here were mixed thanks to the uncertainty over the future of Catalonia. The euro continued weakening — the currency had been falling since the European Central Bank pledged to continue with bond purchases beyond September 2018 Thursday despite strong growth. The euro’s weakness provided a boost to exporters. A number of better than expected corporate earnings reports also provided a boost to investor sentiment at the end of the trading week. The FTSE was up 0.2 percent, the CAC added 0.7 percent and the DAX advanced 0.6 percent. The SMI retreated 0.2 percent. For the week, the FTSE was down 0.2 percent and the SMI was 0.6 percent lower. The CAC and DAX added 2.3 percent and 1.7 percent respectively.

Linde jumped after the company confirmed its 2017 outlook after it reported a 3 percent rise third-quarter core profit. Volkswagen gained after reporting a better-than-expected 15 percent jump in third-quarter profit and lifting its profit guidance for the year. Safran rallied after the aerospace group reported third-quarter revenue that beat expectations, driven by higher sales from the aerospace-propulsion business. Total was higher after it reported a 39 percent increase in third-quarter net income, taking full advantage of the favorable market environment.

Royal Bank of Scotland Group advanced after the bank reported three consecutive quarters of profits but still expects a loss for the full-year. British Airways parent International Consolidated Airlines Group sank after it reported a slowdown in passenger revenue growth. LafargeHolcim was lower in Zurich after saying that it is in talks with South African cement manufacturer PPC regarding a possible transaction in Africa. UBS was down after the bank issued a cautious outlook after reporting a 14 percent rise in third-quarter net profit.

The IBEX was down 1.5 percent on the day but only 0.2 percent on the week. The Parliament of the Catalonia region voted in favor of breaking away from Spain and founding an independent state. The Spanish Senate has subsequently approved the disqualification of the Catalan regional government. The declines came as Spain’s central government prepared to impose direct rule over Catalonia. The region’s declaration of independence appeared to be a futile gesture, but the moves on both sides took Spain’s political crisis to a new and possibly dangerous level.

Asia Pacific

Most Asian stocks advanced Friday and on the week. A weaker yen, higher oil prices, optimism over US tax reform prospects, solid industrial profits data from China and encouraging results from US tech companies boosted investor morale. Traders also took Thursday’s ECB bond-buying cutback announcement in stride.

The Shanghai Composite and Hang Seng were up 0.3 percent and 0.8 percent respectively after official China's industrial profit growth accelerated in September. Industrial profits surged 27.7 percent on the year, even faster than the 24.0 percent jump in August. For the week, the Shanghai Composite advanced 1.1 percent while the Hang Seng slipped 0.2 percent.

The Nikkei was up 1.2 percent and the Topix added 1.0 percent Friday as Japanese shares hit a fresh 21-year high, led by technology stocks after Amazon, Intel and Microsoft all posted quarterly earnings that surpassed expectations. Alphabet also performed better than a year ago. On the week, the Nikkei was up 2.6 percent and the Topix, 2.3 percent. Exporters Honda Motor and Canon gained as the dollar hit a 3 1/2 month high against the yen. Advantest and Sumco advanced. Banks Mitsubishi UFJ Financial and Mizuho Financial were higher after US Treasury yields inched higher on Thursday. September consumer prices were up an annual 0.7 percent — rising for the ninth straight month but coming in well below the Bank of Japan's 2 percent target.

Both the S&P/ASX and All Ordinaries were down 0.2 percent Friday. For the week, the S&P/ASX added 0.1 percent while the All Ordinaries was virtually unchanged. On the day, shares retreated after Australia's High Court ruled the deputy prime minister's election invalid because of his New Zealand citizenship. The big four banks declined. Macquarie Group rallied after it reported record first-half profit and upgraded its earnings forecast for the full year. BHP Billiton and Rio Tinto ended narrowly mixed while South32 rallied to hit its highest level in more than three weeks. Airline Qantas Airways retreated after warning of rising fuel costs.

The Kospi was up 0.6 percent on the day and 0.3 percent on the week. The Sensex was up 10.09 points Friday and 2.4 percent on the week.

Looking forward

Global Stock Markets

Note — all releases are listed in local time.