Market Recap: Friday, October 9 – Yahoo Finance

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Stocks traded higher Friday as investors continued to contemplate chances of a virus-relief package amid mixed signals from officials as to what size of a proposal they might support. The S&P 500 and Nasdaq each posted their best weekly gain since July as of Friday’s close, rising about 3.7% and 4.6%, respectively. The Dow gained also 3.3% on the week for its best gain since August.

Video Transcript

SEANA SMITH: Welcome back to “The Final Round” here on Yahoo Finance. I’m Seana Smith. We have stocks on track to end the day in the green, as we wrap up what has been a pretty volatile trading week. Of course, hope of a stimulus package of some sort has been keeping this upward trend intact over the last several trading days.

Taking a look at the action today, we are set to close well off the highs of the day. The Dow up just around 150 points, the S&P up nearly 1%, and the NASDAQ, once again, outperforming in this market. We haven’t seen that for the past few trading days, but the NASDAQ back up nearly 1 and 1/2%. You can–

[BELL RINGING]

And that does it for the trading week. Again, all three of the major averages closing in the green. The Dow up just around 160 points, S&P up nearly 1%, and the NASDAQ the big outperformer. S&P and NASDAQ both having their best weeks in a couple of months.

Taking a look at the sector action today, technology is back in the driver’s seat. Technology the biggest outperformer today when you take a look at the action. We saw a little bit of a change in leadership in the middle of the day. But tech the big outperformer. Consumer discretionary is also one of the best-performing sectors of the day. Materials and industrials holding on to gains as well.

On the flip side, energy giving back some of the gains that it reported yesterday, closing in the red today. And, of course, we have oil under just a little bit of pressure, off just round 1 and 1/2%. Taking at fixed income, the 10-year treasury yield logging its biggest weekly jump here since August. This, of course, comes as those fiscal stimulus talks remain in focus.

So I want to bring in my co-host for the next 60 minutes, Jen Rogers. We’re also joined by Rick Newman, Akiko Fujita, and Jared Blikre are here with us. And Jen, it’s another strong week for the markets.

Jared is sending through some some, I guess, weekly gains at this point. The S&P and NASDAQ reporting their best week since early July, the Dow having its best week since early August. So certainly, we’re trending in the right direction. And investors remain very hopeful that we will get some sort of deal out of Washington.

JEN ROGERS: I think what’s so interesting about the market right now is that people were looking for other stocks to do well. And when I say other stocks, I mean stocks that are not the FAANGs. And that’s happening. And we’re not losing on the FAANG side either. We’re also continuing to see gains.

I mean, we’ve had some flattish days there. But we’re still having some strength there. And that’s showing overall how this market is doing. And that is that it’s pretty healthy. And it’s incredibly interesting against the backdrop of confusion on what’s happening with stimulus out of Washington DC.

Now, this market seems to think it’s going to get it eventually, optimistic about that. Maybe the timeline doesn’t matter so much. But the health of this, given the contrast of what we’re seeing out of elected officials in DC, I think is worth noting.

SEANA SMITH: It certainly is worth noting, because, of course, the question is whether or not we’re being a little bit too optimistic about that at this point. But Jared Blikre, taking a look at some of these technical levels that we’ve been watching very closely, the Dow closing up back above 28,500, S&P getting closer and closer to 3,500. Certainly, we’ve been trending in the right direction. We’ve been pushing up against some areas of resistance. But what are you keeping an eye on today.

JARED BLIKRE: Well, we were looking at some resistance points at the beginning of the week that have now been severely breached to the upside. And I say severely, sounds bad. No, that’s good, and the specifically right around 3,400, 3,410.

We punched up against that. And we got that big downdraft. I think that was when Trump was saying that no more stimulus talks until after the election. Well, that changed, of course. And, in fact, we’ve been up four out of five days this week. So it’s a nice run from Friday of last week.

And there’s really not much resistance, as you will see, or potential resistance from price action until you get to these record highs. So we could get up to 3,600 again. It depends on what happens with the election. I’ve got to say, put out that caveat every day. But pretty constructive overall.

So let’s also take a look at the bond market, which you mentioned. And we do have this run up here. We’ve gotten some resistance at 80 basis points. I’m not going to go over all the levels again. But anytime we get some kind of action to the upside, it tends to be quickly reversed.

Now, what we’re seeing here is some kind of flagging action. So I think it is possible that will spike higher. But I don’t expect the market to get beyond 1%. And that’s way up here.

And it’s amazing that we’re saying 1%, way up here, but it is. That’s 22 basis points it has to climb, and haven’t been able to do that since March. That was just kind of a dead cat bounce reaction.

So overall, a constructive– another constructive week. Breadth was good for the week, not particularly today. But overall, looking good heading into the election. And didn’t think I’d be saying that a couple weeks ago or at the beginning of this week.

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