Dow jumps more than 300 points, heads for winning week after strong start to earnings season

U.S. stocks rose on Friday as better-than-expected third-quarter earnings reports set the three major indexes on track for a winning week.

The Dow Jones Industrial Average gained about 365 points, or 1%. The S&P 500 added 0.7% and the Nasdaq Composite rose 0.5%.

The Dow and the S&P 500 sat 1% and 1.7%, respectively, below their all-time highs.

Earnings momentum continued Friday as Goldman Sachs’ third-quarter results beat significantly on the top and bottom line. The bank stock gained more than 3% and was among the top gainers on both the Dow and the S&P 500.

The stellar report came after earnings beats from other big banks earlier in the week. Financial heavyweights JPMorgan, Bank of America, Morgan Stanley and Citigroup were among the firms topping expectations.

“The banks painted a strong and healthy picture of the US consumer,” noted Edward Moya, senior market analyst at Oanda. “Wall Street can’t turn negative on the economy after seeing reserve releases, moderating trading revenue, mixed loan growth, and a consumer willing to take on debt.”

Retail sales posted a surprise increase in September, rising 0.7%. Economists polled by Dow Jones were expecting a 0.2% decline.

“The inflation environment and concerns about supply chains have not put a strong dent in retail sales,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management. “Consumers are acclimating to higher prices. So far that hasn’t resulted in a meaningful fall-off in demand. But this willingness to absorb higher prices is not unlimited.”

Elsewhere, bitcoin crossed the $60,000 level as investors were optimistic about the chance of the U.S. Securities and Exchange Commission approving the first bitcoin futures exchange-traded fund.

The cryptocurrency’s jump added to positive market sentiment, suggesting risk-taking could pick up. Tesla and Coinbase shares rose.

So far, 80% of the 41 S&P 500 companies that have reported third-quarter results have topped earnings-per-share expectations, according to FactSet.

Taking into account these results and estimates for those yet to report, the blended third-quarter earnings growth rate for the S&P 500 is 30%, FactSet analysis shows.