Day Traders Diary

10/15/21

The major averages rose Friday thanks to better-than-expected third-quarter earnings reports boosting the Dow Jones Industrial Average to its best weekly performance since June. The Dow Jones Industrial Average gained 382 points, or about 1.1%, to 35,294. The S&P 500 added 33 points or 0.75% to 4,471 while the Nasdaq Composite rose 73 points or 0.5% to 14,897.

The three major indexes closed the week higher and are positive on the month.

The Dow sat 0.9% below its all-time high. The S&P 500 and Nasdaq Composite were 1.6% and 3.3% off record highs, respectively.

Third-quarter earnings reporting season continued Friday as Goldman Sachs' results beat significantly on the top and bottom line. The bank stock gained 3.8% and was the top gainer on the Dow.

The stellar report came after earnings beats from other big banks earlier in the week. Financial heavyweights JPMorgan, Bank of America, Morgan Stanley and Citigroup were among the firms topping expectations.

So far, 80% of the 41 S&P 500 companies that have reported third-quarter results have topped earnings-per-share expectations, according to FactSet. Taking into account these results and estimates for those yet to report, the blended third-quarter earnings growth rate for the S&P 500 is 30%, FactSet analysis shows.

Retail sales posted a surprise increase in September, rising 0.7%. Economists polled by Dow Jones were expecting a 0.2% decline.

Elsewhere, bitcoin crossed the $60,000 level as investors were optimistic about the chance of the U.S. Securities and Exchange Commission approving the first bitcoin futures exchange-traded funds.

The cryptocurrency's jump added to positive market sentiment, suggesting risk-taking could pick up. Tesla added 3%, and Coinbase shares rose 7.9%.