Breaking
Stocks rebound as bank earnings come in to focus
U.S. stocks opened higher on Friday, partially reversing the weeklong decline, as third-quarter earnings season comes into view. The S&P 500 rose 33 points, or 1.2%, to 2,762. The Dow Jones Industrial Average picked up 411 points, or 1.6%, to 25,446. The Nasdaq Composite jumped 176 points, or 2.5%, to 7,511. The rebound follows a torrid multisession decline for equities, which cut about 1,400 points from the Dow Jones Industrial Average, and briefly pushed Nasdaq into correction territory. According to FactSet, analysts are looking for earnings growth of about 19% and sales growth of 7% in the third quarter. Though investors expect a strong round of corporate earnings, questions remain concerning the sustainability of robust earnings growth, as the benefits from tax cuts passed earlier this year starts to fade. Earnings for JPMorgan Chase & Co. and Citigroup Inc. beat analysts’ expectations.