This story was updated at 4:44 p.m. EDT.
U.S. stocks ended the week down, following global markets, on the same day U.S. data indicated that consumers may be spending more cautiously ahead of the all-important holiday spending season. But U.S. stocks ended with their best month since 2011, with all three U.S. indexes ending October up between 8 percent and 10 percent.
The Commerce Department said Friday that personal spending, which means U.S. consumer spending on everything from televisions to Uber rides, ticked up a tepid 0.1 percent in September, down from 0.4 percent in August. But a separate widely followed monthly report from the University of Michigan showed consumer sentiment, a measure of Americans' willingness to buy goods and services, increased for the second consecutive month in October.
September’s spending increase was the smallest since January when a harsh winter kept many Americans away from malls and restaurants. Wages and salaries decreased last month too.
“The annual pace of overall compensation and private wage and salary remains lackluster,” said Gregory Daco, head of U.S. macro research at Oxford Economics. “The continued sluggish readings in employee compensation are surprising and a bit of a puzzle given the many labor-market indicators pointing to a tighter labor market.”
The Dow Jones Industrial Average (INDEXDJX:.DJI) lost 92.26 points, or 0.52 percent, to 17,664 on Friday. The S&P 500 index (INDEXSP:.INX) declined by 10.05 points, or 0.48 percent, to 2,079. The Nasdaq composite (INDEXNASDAQ:.IXIC) shed by 20.53 points, or 0.40 percent, to 5,053.
Half of the 10 S&P 500 sectors were down Friday, led by consumer staples and financial services. All 10 sectors hinted at a relatively flat trading day. Caterpillar Inc. (NYSE:CAT) led gains Friday morning among the 30 Dow components, while Pfizer Inc. (NYSE:PFE) was led declines.
Key Asian markets closed mixed after the Bank of Japan hinted at further economic stimulus measures after cutting inflations and growth forecasts. Toyo’s Nikkei gained 147.39 points or 0.78 percent to 19,083 on Friday. The Shanghai Composite Index lost 4.75 points or 0.14 percent to 3,383 on Friday after spending much of the day up on news the country was easing its one-child policy, which boosted shares in all things baby-related, especially dairy stocks. Meanwhile, Hong Kong’s Hang Seng followed global markets down, losing 179.9 points, or 0.79 percent, to 22,640.
European shares closed mixed Friday despite modest improvements in the persistently sluggish regional economy. Consumer prices in the eurozone inched up to zero in October, from a decline of 0.1 percent in September. Euro area unemployment ticked down in September, to 10.8 percent, from 10.9 percent in August, hitting a six-year low. Meanwhile, Spain, Europe’s fifth-largest economy, reported that its gross domestic product increased by 0.8 percent in the three months ending September, down from 1 percent in the previous three months.
France’s CAC 40 index closed up 11.84 points, or 0.24 percent, to 4,898 on Friday. London’s FTSE shed 34.71 points or 0.54 percent to 6,361. The German DAX gained 49.30 points or 0.46 percent to 10,850.
Oil futures traders are looking to the results of talks Friday among officials from Saudi Arabia, Iran, Russia, China and Turkey Friday for hints at future Middle East stability, which affect oil futures prices.
West Texas Intermediate crude oil, the U.S. benchmark for oil prices, gained 0.74 percent to $46.40 per barrel for December delivery on the New York Mercantile Exchange. On the London ICE Futures Exchange, Brent crude, the global benchmark for oil prices, gained 1.23 percent to $49.40.
Earnings-Season Friday Market Movers
AbbVie Inc. (NYSE:ABBV) said Friday its July-September quarterly revenue jumped 26 percent compared to the same time last year, driven in part by a rise in global demand for its Humira arthritis treatment. The Illinois drugmaker beat estimates on profit and revenue, which boosted its share price Friday by about 10 percent to $59.55. AbbVie stock is down 9 percent for the year.
LinkedIn Corp. (NYSE:LNKD) said after markets closed on Thursday that it earned 21 percent more revenue, $138 million, from its premium services in the July-September quarter. The California online professional networking company beat profit and revenue forecasts, which sent its share price up 11 percent to $243.80 on Friday. LinkedIn shares are up nearly 5 percent since the start of the year.
Starbucks Corporation (Nasdaq:SBUX) said before markets opened Friday that comparable-store sales – a key retail measure that excludes recently opened stores – grew 8 percent globally in the July-September quarter compared to the same period last year. The Seattle-based coffee chain met profit estimates but beat revenue forecasts. But Starbucks shares closed nearly flat on Friday, eking out a 0.07 percent gain to $62.57 by the losing bell as investors focus on what could be a lackluster holiday season for consumer spending. Starbucks shares are up nearly 53 percent for the year.
Expedia Inc. (Nasdaq:EXPE) said Thursday after markets closed that room bookings made through its site jumped 25 percent domestically and 50 percent globally in the July-September quarter compared to the same period last year. The Bellevue, Washington-based online travel-booking company beat profit estimates while revenue was in line with analysts’ forecasts. Company shares closed up 7.27 percent Friday to $136.30. Expedia stock is up nearly 60 percent for the year.
CVS Health Corp. (NYSE:CVS) said before markets opened Friday that its revenue grew by nearly 11 percent in the July-September quarter compared to the same time last year, helped by a boost in health-insurance claims processing. But the Rhode Island-based pharmacy chain fell short of quarterly profit expectations. Despite beating analysts’ revenue forecast, the company’s share price closed down Friday by nearly 5 percent, to $98.79. CVS stock is up about 2.5 percent for the year.
SolarCity Corp. (Nasdaq:SCTY) said after markets closed Thursday that it installed a record 256 megawatts of solar power in the July-September quarter. The solar-power services provider co-founded by billionaire engineer and businessman Elon Musk reported revenue that was above expectations, but significantly wider-than-expected losses for the quarter. Shares in the San Mateo, California-based company plunged by about 22 percent Friday, to $29.65 after the company pledged to cut costs and improve its balance sheet.