Stocks close sharply higher ahead of Fed week

STORY: A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a rosier earnings outlook fueled investors’ appetite for risk ahead of next week's much-anticipated Federal Reserve meeting.

All major U.S. indexes ended the day up about two-and-a-half percent or more, with the S&P and Nasdaq notching their second straight weekly gains. The Dow posted its biggest weekly percentage gain since May.

But Ken Moraif, founder and CEO of Retirement Planners of America, said investors were distracted by Thursday's strong but backward-looking GDP report when they should have been looking at the warning signs ahead… most notably from Amazon, which gave a gloomy outlook for holiday quarter sales.

"I think what the markets are doing is they're looking in the rearview mirror while they're driving down the highway at 60 miles an hour. And to me, that's not a very safe thing to do. And I'll explain what I mean by that. GDP numbers are what's driving the market, I think, today. We saw a strong GDP number come in. And that's rearview looking. That's basically the economy grew, not grow, will grow, but grew. And so, looking in the rearview mirror, it looks like, okay, the economy is, it has still grown. But in my opinion, what you should be looking at is through the front, the windshield, to see where you're going. And if I do that, then I look at what Amazon came out with, and they said they're going to have potentially the worst shopping season over the holidays ‘ever.’ Not five years, ten years - ‘ever.’”

Amazon’s news sent its shares down 6.8% on Friday, capping a week in which Big Tech shares took a brutal beating after forecasting tough days ahead.

They all rebounded Friday – with Apple jumping more than seven-and-a-half percent a day after reporting revenue and profit that topped analysts’ estimates.

Intel jumped 10.7% after cutting its spending forecast, while T-Mobile’s subscriber forecast hike sent its shares up 7.4%.

And Twitter was delisted from the New York Stock Exchange, closing the book on Tesla chief Elon Musk's $44 billion purchase of the company.