US stocks rose for the third straight day on Friday, scoring the first weekly gain since early September after erasing Monday's steep declines.
The S&P 500 index gained 0.15% to 4,455.48 and the Dow Jones Industrial Average rose 0.1% to 34,798. The Nasdaq Composite closed marginally lower at 15,047.70.
The S&P 500 was up 0.5% on the week despite Monday's loss of 1.7%.
Banks, oil drillers and railroads fared the best, while health care and real estate stocks lagged.
The 10-year US Treasury yield rose 5 basis points to 1.46%, the highest since mid-July after the Federal Reserve earlier this week signaled plans to reduce asset purchases.
Sales of new US single-family homes rose 1.5% in August from the upwardly revised seasonally adjusted annual rate in July. The average price held steady at $390,900, as homebuilders began catching up with the pandemic-fueled surge in demand by boosting the inventory of unsold homes to a 13-year high.
"As the economy recovers from this pandemic shock, its path is likely to confound our assumptions about what a return to normal might look like. The same is true for the monetary policy normalization process," said Kansas City Federal Reserve Bank President Esther George in a speech Friday. George, a monetary policy hawk, pointed to persistent reports of labor shortages, saying many older workers have retired permanently since the pandemic started.
Nike (NKE) shares slumped 6.2% after the athletic footwear and apparel manufacturer cut its full-year revenue guidance for fiscal 2022, citing factory shutdowns and shipping delays amid the COVID-19 pandemic.
Vietnam, where most Nike shoes are made, ordered ongoing factory shutdowns during the summer to stem the spread of COVID-19 infections that have already cost the company 10 weeks of output, with phased reopening now slated for October and several months needed to ramp back up to full production, Chief Financial Officer Matthew Friend said on the Q1 earnings conference call. At the same time, "already long transit times worsened," he said.
Costco (COST) reported supply chain struggles as well, limiting purchases of paper goods, water and cleaning supplies newly in demand amid the latest COVID-19 wave. Chief Financial Officer Richard Galanti said the annual inflation rate on the goods the warehouse retailer sells has risen to a range of 3.5% to 4.5%, up from the estimated 2.5% to 3.5% last quarter. Costco's stock fared better than Nike's, rising 3.3% after quarterly earnings exceeded analysts' expectations.
Meredith (MDP) shares jumped 26% after The Wall Street Journal reported IAC (IAC) has pulled ahead of a rival bidder in talks to buy the magazine publisher of titles including People and Better Homes & Gardens. IAC shares rose 5%.
Bitcoin slumped 4.2% Friday and other digital currencies declined as well after China declared all cryptocurrency transaction illegal, extending an industry crackdown.
West Texas Intermediate crude oil rose $0.63 to $73.93, the highest price in nearly two months. Natural gas rallied $0.20 to $5.17 per million BTU based on the Henry Hub US benchmark. Gold slipped 0.2% and silver fell 1.3% while copper finished 1.2% higher.