US stocks gained on Friday, with benchmark indexes at or near records, after the Bank of Japan unexpectedly expanded stimulus, increasing hopes for the global economy.
The US dollar climbed against the currencies of major trading partners, including the Japanese yen, while dollar-denominated commodities including gold and oil dropped.
“Although quantitative easing might be in the rear window for us here in the United States, it’s present for Japan, and when you get something unexpected like this, you buy equities and sell commodities,” said Art Hogan, chief market strategist at Wunderlich Securities.
LinkedIn gained after the online professional network reported third-quarter sales that beat expectations; GoPro rose after its fourth-quarter profit outlook topped estimates; Citigroup fell after reporting a USD 600 million legal hit; Starbucks dropped after the coffee retailer tallied quarterly revenue that disappointed, and Exxon Mobil after reporting a 3 percent increase in quarterly profit.
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The Bank of Japan increased its yearly target for monetary expansion to 80 trillion yen, or USD 724 billion, from as much as 70 trillion yen.
The European Central Bank “is probably next up. When you look around the globe, the market will most likely applaud when countries that have slowing economies do things to stimulate,” Hogan added.
The Dow Jones Industrial Average opened about 1 percent higher.
The S&P 500 and the Nasdaq also rose sharply.
Read More: Stocks up on better-than-expected GDP; Visa rallies
Equities offered muted reaction to Friday data that had US consumer spending unexpectedly falling in September.
On Thursday, US stocks jumped, with Visa helping lift the Dow industrials into the green for October, after data showed the US economy grew more than expected last quarter.
—By CNBC’s Kate Gibson