Earnings set for fastest growth in 8 years Indices finish week higher despite Friday’s declines Apple shares (NASDAQ:) plunge the most in four years despite stellar earnings, underscoring how demanding investors have become
Though stocks on the , and finished lower on Friday, and the small cap eked out just a slight gain, all major US indices were higher for the week. The weekly finish signals that traders have recovered their confidence amid positive earnings and hopes for easing trade tensions.
As well, Friday’s eviscerated any expectation of an economic slowdown, suggesting continued strong instead, the backbone of the US . Adding to the optimism, corporate results, of which roughly 75 percent have been reported so far, are set to collectively post the fastest growth in eight years.
That provides a positive double catalyst for equities at this point: additional corporate growth combined with the recent decline in stock prices has led to lower valuations, making equities more tempting, albeit driving volatility.
Even after the recovery in equity markets, traders are continuing to bet that will be higher going forward than it was during all of 2017 as well as during the April to October period this year.
Best Week For S&P 500 In Months
S&P 500 Daily
The S&P 500 finished Friday down 0.63 percent, with all sectors but (+0.41 percent) in the red. (-1.95 percent) and (-1.01) led the declines, pressured heavily by one if its major components, Apple (AAPL), which plunged on Friday, down 6.63 percent on the back of its disappointing .
Even after the US benchmark’s first slide in four days, it was still its best week for the index in six months. The SPX advanced 2.42 percent, with ten sectors in the green while Utilities (-0.41