Solid earnings results and optimism over US-China trade talks drove stocks near all-time highs. The S&P 500 rose 1.2% and the Dow gained 0.7% for the week. Abroad, the FTSE All-World Ex-US climbed 1.2% for the week. The 10-year Treasury yield rose on the positive corporate news to finish the week at 1.81%.
With roughly a third of S&P 500 companies reporting earnings, 81% have topped expectations, but the index is still on pace to see a decline of 4.1% from the prior year.
The European Central Bank didn’t make any policy changes at its October meeting. Business activity was close to stagnation in the eurozone and contracted in Japan.
Consumer sentiment showed American’s feelings about the economy worsened slightly at the end of October.