Hamza Shaban
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Stock market today: Nasdaq, S&P 500 step higher as Netflix jumps after earnings beat
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US stocks rose on Friday, with tech in the lead as investors welcomed Netflix's (NFLX) across-the-board earnings beat in the wait for the next batch of corporate results.
The tech-heavy Nasdaq Composite (^IXIC) moved up roughly 0.6%, while the S&P 500 (^GSPC) added about 0.3%. The Dow Jones Industrial Average (^DJI) rose just above the flatline after hitting a fresh record closing high.
The major stock gauges are all on track for a sixth weekly win in a row after a strong showing by big banks to kick off earnings season.
Netflix's results late Thursday relieved some worries that Big Tech names might struggle in the third quarter as they did in the last. The streaming giant's profit surged to outstrip Wall Street estimates, while revenue and subscriber growth also came in stronger than expected. Its shares jumped around 10% in afternoon trading.
At the same time, a rebound in Chinese stock markets propelled gains in US-listed shares of Alibaba (BABA), JD.com, (JD) and PDD (PDD). The rally came amid revived optimism for more stimulus to help China's economy.
In commodities, gold (GC=F) prices hit a new record, topping $2,700 an ounce for the first time. Concerns about the Middle East conflict and uncertainty about the outcome of the US presidential election prompted a shift to less-risky assets.
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Single-family housing starts ramped up in September as mortgage rates fall
Single-family housing starts gained in September from the previous month amid lower mortgage rates.
The measure rose 2.7% to a seasonally adjusted annual pace of 1.027 million units, the strongest pace in five months, according to new data from the Census Bureau.
The increase came as mortgage rates slid steadily last month, pushing the average 30-year fixed loan to its lowest level since early February 2023. The Fed cut its benchmark rate by half a percentage point in September.
Lower rates likely encouraged builders to file more building permits during the month. Contract permits for single-family dwellings rose to a pace of 970,000, a 0.3% gain from August’s revised figure of 967,000 units.
October’s data could reveal a different story, given that mortgage rates have ticked back up.
“While single-family home building increased in September, higher mortgage interest rates in October are likely to place a damper on growth in next month’s data,” NAHB’s chief economist Robert Dietz wrote in a note after the release.
Overall, housing starts eased in September, pressured by a drop in multifamily construction. Housing starts slipped 0.5% from the previous month to a seasonally adjusted annual pace of 1.354 million units.