US close: Stocks gain on CPI print, solid earnings

(Sharecast News) - Major indices closed firmly higher on Friday as traders digested September's consumer price inflation report.

At the close, the Dow Jones Industrial Average was up 1.01% at 47,207.12, while the S&P 500 advanced 0.79% to 6,791.69, and the Nasdaq Composite saw out the session 1.15% firmer at 23,204.87.

The Dow closed 472.51 points higher on Friday, extending gains recorded in the previous session, driven by inflows into tech stocks and some solid third-quarter earnings.

Friday's primary focus was September's CPI report, which revealed US consumer prices increased in September, according to the Bureau of Labor Statistics.

Headline CPI rose 0.3% month-on-month, down from 0.4% in August, while the annual rate rose from 2.9% to 3%, the highest it's been since January, with food index being the largest contributor to the monthly increase, while energy prices rose 2.8%. Core CPI, which strips out volatile food and energy prices, actually slowed from 3.1% to 3%.

The Federal Reserve's preferred inflation gauge was seen as being particularly important this month, given the lack of federal data being released amid the ongoing government shutdown.

September's CPI, which was originally scheduled to be released on 15 October, will be the last piece of economic data released before the Federal Reserve's two-day policy meeting next week, with market participants widely expecting the central bank to lower its benchmark overnight interest rate by another 25 basis points.

Elsewhere on the data front, a preliminary reading of S&P Global's manufacturing PMI rose to 52.2 in October, up from 52.0 in September and slightly above expectations of 52.0, while the services PMI rose to 55.2 from 54.2 in the previous month, well above market expectations of 53.5 to mark the second-sharpest pace of growth in the sector this year. The composite PMI rose to 54.8 in October, up from 53.9 in September for the highest reading since July.

Finally, the University of Michigan's consumer sentiment index was downwardly revised to 53.6 in October, down from a preliminary reading of 55 and a print of 55.1 in September. October's print marked the lowest reading in five months, with both the current conditions and expectations gauge revised down.

In the corporate space, Intel reported a quarterly earnings beat in its first earnings report since the White House took up a 10% stake in the company, while Ford said quarterly profits had grown the back of strong sales, but lowered its full-year sales guidance as it warned a first at an aliminium factory would weigh on profits.

Procter & Gamble posted first-quarter earnings and revenue that came in ahead of analysts' expectations, buoyed by higher demand for its beauty and grooming products, and reiterated its full-year guidance despite higher costs from tariffs and a "challenging consumer and geopolitical environment", while Sanofi reported third-quarter profits that beat forecasts, boosted by demand for its asthma drug Dupixent, offsetting declines in sales of its flu and Covid vaccines.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

International Business Machines Corporation (CDI) (IBM) $307.46 7.88%

Goldman Sachs Group Inc. (GS) $784.06 4.41%

JP Morgan Chase & Co. (JPM) $300.44 2.00%

Boeing Co. (BA) $221.35 1.64%

Apple Inc. (AAPL) $262.82 1.25%

Dow Chemical Co. (DOW) $24.81 1.22%

Verizon Communications Inc. (VZ) $38.82 1.09%

American Express Co. (AXP) $357.99 0.74%

Unitedhealth Group Inc. (UNH) $362.50 0.57%

Home Depot Inc. (HD) $386.68 0.43%

Dow Jones - Fallers

3M Co. (MMM) $168.50 -1.81%

Walt Disney Co. (DIS) $111.77 -1.19%

Johnson & Johnson (JNJ) $190.40 -1.08%

Nike Inc. (NKE) $69.11 -0.82%

Walmart Inc. (WMT) $106.27 -0.65%

Chevron Corp. (CVX) $155.56 -0.64%

McDonald's Corp. (MCD) $306.26 -0.38%

Coca-Cola Co. (KO) $69.71 -0.33%

Salesforce.Com Inc. (CRM) $254.83 -0.09%

S&P 500 - Risers

Ford Motor Co. (F) $13.84 12.16%

Western Union Co. (WU) $8.97 10.20%

Albemarle Corp. (ALB) $105.64 8.50%

International Business Machines Corporation (CDI) (IBM) $307.46 7.88%

Goldman Sachs Group Inc. (GS) $784.06 4.41%

NRG Energy Inc. (NRG) $170.06 4.00%

CenturyLink Inc. (LUMN) $8.09 3.85%

Delta Airlines Inc. (DAL) $61.13 3.71%

Jefferies Financial Group Inc. (JEF) $56.91 3.46%

Quanta Services Inc. (PWR) $441.02 3.18%

S&P 500 - Fallers

Mohawk Inds Inc. (MHK) $119.80 -6.98%

Newmont Corporation (NEM) $83.37 -6.23%

Alaska Air Group Inc. (ALK) $43.77 -6.13%

Illinois Tool Works Inc. (ITW) $245.75 -4.54%

Packaging Corp. Amer (PKG) $205.52 -3.95%

FMC Technologies Inc. (FTI) $39.51 -3.49%

Avery Dennison Corp. (AVY) $181.21 -2.52%

Halliburton Co. (HAL) $26.61 -2.46%

Williams Companies Inc. (WMB) $57.48 -2.46%

Allegion (ALLE) $167.43 -2.29%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $129.43 2.95%

Lam Research Corp. (LRCX) $151.66 2.80%

Alphabet Inc. Class A (GOOGL) $259.92 2.70%

Trip.com Group Limited (TCOM) $72.79 2.41%

Apple Inc. (AAPL) $262.82 1.25%

Fiserv Inc. (FI) $125.17 0.98%

Starbucks Corp. (SBUX) $86.08 0.75%

Mercadolibre Inc. (MELI) $2,161.11 0.60%

Regeneron Pharmaceuticals Inc. (REGN) $578.00 0.40%

Gilead Sciences Inc. (GILD) $120.95 0.17%

Nasdaq 100 - Fallers

Analog Devices Inc. (ADI) $238.09 -2.14%

Texas Instruments Inc (TXN) $169.13 -1.78%

Hasbro Inc (HAS) $76.68 -1.61%

Align Technology Inc. (ALGN) $135.27 -0.54%

Vertex Pharmaceuticals Inc. (VRTX) $421.49 -0.27%

Fastenal Co. (FAST) $42.88 -0.27%

DENTSPLY Sirona Inc. (XRAY) $13.13 -0.27%

Automatic Data Processing Inc. (ADP) $280.98 -0.20%

Comcast Corp. (CMCSA) $29.28 -0.07%