U.S. stocks ended higher on Friday after quarterly earnings better than expected drew applause on Wall Street, while the current expectations of the Federal Reserve to maintain expansionary policy in 2014 boosted stock prices too.
At the close of the U.S. session, the Dow Jones Industrial Average ended up 0.39 %, the S & P 500 rose 0.44 %, while the Nasdaq composite index rose 0.37 %.
Procter & Gamble, UPS, Microsoft and Amazon released earnings reports that beat Wall Street expectations, prompting demand for equities on Friday.
Meanwhile, conservative Sen. Rand Paul allegedly threatened to delay the nomination of Janet Yellen to chair the Federal Reserve, which dampened the market’s rally something quickly dismissed the threat as unlikely to materialize, giving stocks room to continue climbing .
Yellen is seen by markets as pessimistic and may favor maintaining ultra-loose monetary policy of the Fed in place, especially in the wake of the weak data.
The Thomson Reuters / University of Michigan consumer sentiment index for October end fell to 73.2 from 75.2 in September, worse than expectations for a downtick to 75.0.
The report added that inflation expectations ticked up to 3.0% in October from 2.9% the previous month.
The data came after the Census Bureau said that U.S. core durable goods orders, excluding transportation items, fell 0.1 % in September, defying expectations for a rise of 0.5 % after a fall of 0.1 % the previous month.
Large orders for U.S. durable goods rose 3.7 % last month, beating expectations for an increase of 2.0 % after rising 0.1 % in August.
Poor data on Friday, which came in the wake of weak data from the labor market earlier this week , keep expectations go to the Federal Reserve to continue to stimulate the economy with USD85 billion in monthly bond purchases drive down interest rates to stimulate recovery , weakening the dollar in the process.
The Dow Jones Industrial Average major artists including Microsoft, to 5.83 %, American Express , to 2.05 % , and Intel , up 1.89 %.
Worst Performance The Dow Jones Industrial Average include Procter & Gamble, up 0.78 % , Home Depot, up 0.63 % , and IBM , to 0.55 %.
European indices, meanwhile, ended mixed.
After the close of European trade, the EURO STOXX 50 fell 0.15 %, France’s CAC 40 fell 0.08 % , while Germany’s DAX 30 climbed 0.06%. Meanwhile, in the UK the FTSE 100 finished 0.12 %.