US stocks continued their recent rebound driven by better than expected corporate earnings to hit a new record high during the week. The S&P 500 climbed 1.6% and the Dow rose 1.1% for the week. Abroad, the FTSE All World Ex US gained 0.6% for the week. The yield on the 10-year Treasury rose to 1.65%, up from 1.57% to reach its highest level since May. Oil continued its recent climb to finish the week at $83.76, its highest level in seven years.
China’s GDP grew at a 4.9% pace in the third quarter, less than expected and significantly less than the 7.9% growth seen in the second quarter.
Industrial production fell 1.3% in September due to Hurricane Ida and supply chain disruptions. An increase was expected.
Initial jobless claims fell to 290,000, a new pandemic era low.
Existing home sales rose 7% in September from August.
In public comments Fed Chief Powell said inflation risks have increased and that he is more concerned about its impacts.
Analysts now estimate that earnings rose 35% in the third quarter from last year and to date roughly 80% of S&P 500 firms have topped analysts’ earnings estimates.