Dow Adds 300 Points, Ends Losing Streak: Stock Market Today
The Dow, the S&P 500 and the Nasdaq head into the weekend on high notes after posting gains for the first time since Monday.
Relatively tame inflation data boosted the main U.S. equity indexes into Friday's opening bell, and fresh confirmation of fading consumer sentiment proved only a temporary headwind. Markets appear to be taking new tariffs on trucks, drugs and kitchen cabinets in stride into the last weekend of September.
The final trading session of the week was up, down and up again, with the Fed's preferred inflation gauge printing in line with expectations. According to the Bureau of Economic Analysis, the Personal Consumption Expenditures Price Index (PCE) rose 0.3% month over month and 2.7% year over year in August.
Core PCE, which excludes food and energy prices, was up 0.2% and 2.9%, also in line with expectations. As LPL Financial Chief Economist Jeffrey Roach notes, core PCE "showed signs of normalcy" last month.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"If businesses remain in a 'low hire – low fire' mode," Roach concludes, "the job market should remain stable enough to keep the economy out of recession." This could prove challenging for a Fed that would like to cut interest rates "without stoking greater inflation pressure."
At Friday's closing bell, the tech-heavy Nasdaq Composite had added 0.4% at 22,484, trimming its loss for the week to 0.7%. The Nasdaq remains on track to post a monthly gain for September.
The broad-based S&P 500 rose 0.6% to 6,643, stopping its three-session losing streak, finishing the week with a loss of 0.3% but staying positioned for a monthly gain too.
The blue-chip Dow Jones Industrial Average was up 0.7% at 46,247, closing higher for the first time since Monday but posting a 0.1% five-day loss. Still, the Dow is also on track for a positive September.
BA gets some lift
Boeing (BA, +3.6%) took off and was the top performer among the 30 Dow Jones stocks Friday after the Federal Aviation Administration cleared the aircraft maker to issue its own airworthiness certificates for some 737 MAX and 787 airplanes starting Monday.
"This decision follows a thorough review of Boeing's ongoing production quality and will allow our inspectors to focus additional surveillance in the production process," the FAA said. The regulator "will continue to maintain direct and rigorous oversight of Boeing's production processes."
Meanwhile Turkish Airlines agreed to purchase 75 Boeing 787 twin-aisle jets and up to 150 smaller 737 MAX single-aisle jets. Boeing also announced a new order for 30 737 MAX jets from Norwegian Group.
Morgan Stanley analyst Kristine Liwag reiterated her Equal-weight (or Hold) rating and her $235 12-month target price for BA stock in a Friday morning note, explaining that a positive shift in sentiment over the past year appeared to pause after CEO Kelly Ortberg acknowledged some production problems in mid-September.
Friday's price action suggests the resumption of a "positive shift" driven by "steadily improving 737 MAX and 787 deliveries."
COST provides more retail clues
Costco Wholesale (COST, -2.9%) highlighted an earnings calendar that remains light in terms of number of names but heavy with information about the behavior of the American consumer.
The warehouse retailer reported fiscal 2025 fourth-quarter revenue of $86.2 billion (+8.1% year over year) and earnings of $5.87 per share (+11.0% YoY), topping consensus forecasts of $86.0 billion and $5.80, respectively.
The consumer staples stock suffered in the eyes of investors because same-store sales were 5.7% vs expectations of 5.9% and down from 6.9% a year ago.
UBS analyst Michael Lasser reiterated his Buy rating and his 12-month target price of $1,205 on COST following management's report. According to Lasser, Costco is "proving that it can sustain" its core margin growth momentum" and this "alongside its effective tariff management levers should support the stock's valuation."
Consumers are concerned about inflation and jobs
Inflation remains a major source of frustration, with 44% of respondents to the University of Michigan Surveys of Consumers "spontaneously mentioning" high prices as a threat to their personal finances, the highest reading in a year.
The final read for the September surveys shows sentiment confirmed its initial print "and eased about 5% from last month," according to survey director Joanne Hsu.
Sentiment is above its April and May lows, and the decline "was relatively modest," though Hsu adds that it "was still seen across a broad swath of the population." Consumers are also concerned about the risks of a weaker labor market.
The release of the nonfarm payrolls report for September on Friday, October 3, is the highlight of next week's economic calendar.
Related content
- Best Lithium Stocks to Buy Now
- Day Trading: What Is It and Why Is It So Risky?
- When Is the Next Fed Meeting?
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
-
Quiz: Understanding Roth ConversionsQuiz Discover if a Roth conversion is the right move for you by taking our quick quiz.
-
How Prices Have Changed in Trump's First YearTrump campaigned on bringing prices down for Americans. Here's where prices stand one year into his second term.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market Today
Fiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
-
Beyond the Bar: Your 5-Step Guide to Discovering Whether a Lawyer Is ShadyResearch shows you can't rely on some state bar websites to vet a lawyer you're considering hiring. Here's how to check out a lawyer before you hire.
-
6 Practical Steps to Help Keep Your Student Focused on College Rather Than the Financial StrainToo many students drop out due to financial strain. This plan can help families plan for the costs and get timely aid that sees students through to graduation.
-
Are You the Doer or the Visionary of Your Advisory Practice? Here's How You Can Make the Leap to Chief Vision OfficerThe key is to transition from a tactical "doer" to a strategic "chief vision officer" by building the teams, processes and brand so your practice can grow.
-
These Unloved Energy Stocks Are a BargainCleaned-up balance sheets and generous dividends make these dirt-cheap energy shares worth a look.
-
You've Heard It Before, But This Investment Advice Still Pays Off"Time in the market beats timing the market" — been there, done that, right? But don't write off the underlying advice. There's a reason it's a popular saying.
-
Are Clients Asking About Adding Crypto to Their Retirement Plans? This Is How Advisers Can Approach This New 401(k) FrontierAdvisers need to establish clear frameworks to address client interest, navigate risks like volatility, and ensure they meet their fiduciary responsibilities.
-
3 Niche Oil and Gas Investments for Next-Gen Wealth BuildersLesser-known segments of the oil and gas sector present unique opportunities for next-gen investors and family offices, as long as they're vetted thoroughly.
