Stock Market Today: Stocks End Higher But Snap Spirals

The stock market finished the week strong on hopes the streak of aggressive Fed rate hikes will end sooner rather than later.

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(Image credit: Getty Images)

Stocks closed solidly higher Friday as Wall Street cheered reports the Federal Reserve could consider smaller rate hikes following its November meeting.

An early morning article in The Wall Street Journal suggested some Fed officials have been indicating they support slowing down the pace of rate hikes soon in order to allow what they've done thus far (one 0.25% increase followed by three straight 0.75% raises, and expectations for another 0.75% hike at the Nov. 1-2 meeting) to work. This, along with comments from San Francisco Fed President Mary Daly, who said today that "the time is now to start planning for stepping down," gave stocks enough reason to rally.

A fresh round of well-received corporate results created another tailwind for stocks, with beermaker Boston Beer (SAM (opens in new tab), +19.7%) and regional bank Huntington Bancshares (HBAN (opens in new tab), +9.5%) among those higher on Q3 beats. 

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Not all earnings reactions were positive, though. Snapchat parent Snap (SNAP (opens in new tab)) plunged 28.1% after reporting its lowest year-over-year revenue growth on record due to slowing ad spending.

At the close, the Dow Jones Industrial Average was up 2.5% at 31,082, the S&P 500 Index was 2.4% higher at 3,752, and the Nasdaq Composite jumped 2.3% to 10,859. 

What a Stronger Dollar Means for Stocks

What's in store for next week? A busy earnings calendar loaded with Big Tech results. Among the names set to report are Alphabet (GOOGL (opens in new tab)), Amazon.com (AMZN (opens in new tab)) and Apple (AAPL (opens in new tab)). While earnings from those companies that have posted so far have been generally well received, this next batch could give us a bigger hint at how the stronger dollar impacted corporations in Q3. 

"A strong dollar has been a drag for even some unsuspecting companies such as Johnson & Johnson (JNJ (opens in new tab)), Netflix (NFLX (opens in new tab)) and Levi's (LEVI (opens in new tab)), but it will especially be a headwind for multinationals," says Larry Adams, chief investment officer of Raymond James' private client group. "While the degree of the impact depends on the blend of costs versus sales overseas and how much of the currency risk is hedged, a stronger dollar typically impairs earnings." So, what does a stronger dollar mean for investors of these multinational corporations (and others)? Here, we take a closer look.

Karee Venema
Contributing Editor, Kiplinger.com

With over a decade of experience writing about the stock market, Karee Venema is an investing editor and options expert at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.