US stocks posted their biggest gains since July last week, thanks to solid corporate earnings and unexpected retail sales. Shares have reportedly risen despite weaker-than-expected consumer sentiment in early October, pushing the S&P 500 79% higher. Goldman Sachs, for instance, rallied after seeing a sharp increase in its trading business. Similarly, Charles Schwab jumped with a record profit. JB Hunt Transport Services and Alcoa also performed better than expected.
"We believe that going long in stocks is the best course of action," said Chris Zaccarelli, CIO of Independent Advisor Alliance. "Cyclical stocks such as financial, industrial, energy and commodities are well positioned for further gains, and utilities and consumer staples are going to face headwinds in the form of higher interest rates and inflation," he added.
Goldman Sachs CEO David Solomon also said inflation, especially in wages, remains a top concern for corporate leaders and shareholders. His comments follow similar concerns voiced this week by other executives such as Brian Moynihan of Bank of America and James Gorman of Morgan Stanley.
Meanwhile, the world's most important metals continued to skyrocket as energy shortages further cut production and put pressure on producers, fueling inflation concerns. Brent also hovered around $ 85 amid the global crisis that spiked prices.
Other important data for today are:
- GDP and industrial output in China;
- industrial output in the United States.
