Stocks jumped for the second straight week and reached record highs Friday as Washington trade and shutdown drama took a back seat to cooler inflation data and stronger earnings. The S & P 500 and Nasdaq rose 2% and 2.3%, respectively, for the week. In fact, the S & P 500 on Friday peaked above 6,800 for the first time ever before closing just below that level. Both stock benchmarks finished Friday with record-high closes. Propelling stocks on the final day of the trading week was an encouraging read on the consumer price index for September , which was released 10 days late due to the federal government shutdown. Headline CPI rose 0.3% month over month and 3% year over year. The increases were not as much as expected. The core rate, which excludes food and energy prices, rose 0.2% from the prior month and 3% from the year-ago period. Again, both gains were less than expected. The CPI report was well received because it left the door wide open for the Federal Reserve to cut interest rates again when central bankers gather next week. .SPX .IXIC 5D mountain S & P 500 and Nasdaq weekly performance The CPI was also the only official economic data released during the government shutdown, which was headed into its fourth week. The Senate adjourned Thursday and won’t reconvene until Monday afternoon. As the shutdown dragged on, there was a lot of talk about President Donald Trump ‘s decision Friday to cancel trade talks with Canada, which ran an advertisement featuring former U.S. President Ronald Reagan speaking negatively about tariffs. On the more positive side of the trade ledger, the White House confirmed that Trump’s visit to Asia next week will include a meeting with Chinese President Xi Jinping . Neither the trade headlines nor the shutdown impasse moved markets. What did support the stock market, in addition to the inflation data, was a continued stream of great earnings reports , with roughly 30% of the S & P 500 posting quarterly results so far. In fact, 87% of those names beat earnings expectations, according to LSEG, which is much higher than the typical 67% beat rate. Club names Danaher, Capital One, GE Vernova , Honeywell , and Dover all followed that trend when they each released their numbers this week. On Tuesday morning, Danaher posted a beat on the top and bottom line as the life sciences company issued an upbeat initial forecast for its next fiscal year. Shares, in turn, surged. Investors cheered the much-needed positive news for Danaher after an extended period of underperformance. DHR YTD mountain Danaher YTD “Danaher has tested our patience in recent quarters as the post-pandemic recovery proved challenging for companies that serve the biotech and pharmaceutical industries; a material presence in China added another hurdle to overcome,” Zev Fima, portfolio analyst for the Club, wrote in his earnings analysis. “But a market reaction like we’re seeing Tuesday is why we were willing to stay invested in Danaher, once a reliable…
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