Stocks were higher Friday but off their earlier highs after three big U.S. banks reported quarterly profits that topped forecasts, boosting hopes on Wall Street that third-quarter earnings will be better than feared and mark the end of the so-called earnings recession.
Powered by the upbeat bank earnings, around 1 p.m. ET the
Before the opening bell,
Wall Street is hoping the S&P 500 will break a string of four straight quarters of contracting profit growth when the third-quarter earnings season is complete.
Investors will also be listening for further clues on the Federal Reserve's timetable for interest rate hikes, as chair
U.S. retail sales rose 0.6% in September, coming in line with forecasts, another signal that the U.S. consumer is holding up well. Inflation at the producer level rose 0.3% last month, more than the 0.2% consensus estimate, according to the latest monthly reading on the producer price index.
The trio of bank beats in the U.S. provided a lift to stocks in Europe. The broad Stoxx Europe 600 index was 1.3% higher, and the German DAX was up 1.6% and the
Shares also rose in Japan, with the Nikkei 225 up 0.5%.