Stocks rose Friday as President Trump announced a deal to reopen the federal government for three weeks, temporarily ending a partial shutdown that has hammered earnings of airlines and manufacturers.
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Before Trump’s afternoon statement from the Rose Garden, shares were higher on strong earnings reports and expectations the Fed is willing to tolerate a much larger balance sheet of $3.5 trillion.
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The major equity averages were poised to see five straight weeks of gains. Further, the broad-based S&P 500 was on pace to have its best performance during a government shutdown since at least 1976.
News of the deal to end the partial government shutdown buoyed shares of airlines, whose CEOs have been complaining about the financial impact the shutdown has been having on their businesses.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 24727.07 | +173.83 | +0.71% |
| SP500 | S&P 500 | 2660.09 | +17.76 | +0.67% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7152.2032 | +78.74 | +1.11% |
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Southwest Airlines CEO Gary Kelly, for example, said it would cost the carrier $15 million in the first quarter, while Delta’s CEO said it is costing his airline $25 million each month.
On Friday, major northeastern airports, including New York’s LaGuardia Airport, faced delays due to staffing shortagesOpens a New Window. from the shutdown.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 54.88 | +0.67 | +1.23% |
| AAL | AMERICAN AIRLINES GROUP INC. | 34.98 | +1.32 | +3.92% |
| UAL | UNITED CONTINENTAL HLDG. | 84.17 | +0.14 | +0.17% |
| DAL | DELTA AIR LINES INC. | 47.67 | +0.15 | +0.33% |
| UAL | UNITED CONTINENTAL HLDG. | 84.17 | +0.14 | +0.17% |
Starbucks shares rose as the popularity of its holiday-themed drinks in the United States helped quarterly sales top analysts’ expectations.
Shares of Western Digital jumped after the company said its revenue would improve in the second half of the year. The company’s quarterly results fell short of expectations.
Intel’s current-quarter forecast disappointed as it blamed slowdown in China and sluggish demand for its data center and modem chips, sent its shares down.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| SBUX | STARBUCKS CORPORATION | 66.78 | +2.04 | +3.16% |
| WDC | WESTERN DIGITAL CORP. | 43.38 | +3.25 | +8.08% |
| INTC | INTEL CORPORATION | 46.61 | -3.15 | -6.33% |
In Asian markets on Friday, China’s Shanghai Composite gained 0.4 percent for the session.
Hong Kong’s Hang Seng added 0.4 percent.
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Japan’s Nikkei average dipped less than 0.1 percent at the close.
European markets closed mixed. London’s FTSE slipped 0.1 percent, Germany’s DAX gained 1.4 percent and France’s CAC rose 1.1 percent.
FOX Business’ Ken Martin contributed to this report.
