After taking a beating all week, U.S. stocks rebounded, with all three major indexes punching back. GE and Morgan Stanley helped spur the rally with solid earnings reports. Bobbi Rebell reports.
Risk triumphed over fear - at least on Friday. Stocks surged, bringing an end to a most turbulent week on Wall Street. The Dow broke a six-session losing streak with a triple digit gain. Upbeat corporate earnings and positive economic reports pulled Ebola-and-growth fearing investors back into the markets. For the week, the Dow Nasdaq and the S&P 500 down- the S&P falling for a fourth straight week. In economic news, housing starts and permits rose in September, and this month, consumer sentiment surprisingly shot up to a seven year high. Moody's Analytics director Ryan Sweet: SOUNDBITE: RYAN SWEET, DIRECTOR, MOODY'S ANALYTICS, (ENGLISH) SAYING: "The immediate threat of the weakening global economy on our economy is pretty small. The U.S. economy isn't very export dependent, so trade to the euro zone, trade to China, trade to Japan shouldn't really ding U.S. GDP growth too much." On the corporate front, GE grew quarterly profit more than analysts expected by cutting costs. That pushed up its underperforming stock. GE is considered a bellwether for the economy. Morgan Stanley shares zoomed higher after the investment bank nearly doubled its income. Credit currency trading for pumping up profit. The badly bruised for-profit education stocks mounted a fearsome rally. ITT Educational Services stock more than doubled at one point. It said it had enrolled more students than it had forecast. Rival Corinthian Colleges also got the love from investors. Yellow lights flashing at Urban Outfitter. The retailer warned that weak sales could bite into profit in the current quarter. Setting off the positive tone in the U.S. market today: European stocks. They staged one of the biggest rallies in over a year as concerns over Greece's political stability eased.