US stocks pause, stay on track for best month since 2011

U.S. stocks took a breather Friday morning as government data revealed that wages and consumer spending growth remain feeble. But the market is on track for its strongest month in four years.

TIGHT PURSE STRINGS: The Commerce Department said consumer spending inched up just 0.1 percent in September, partly because consumers were spending less on gas as energy prices fell. The gain was the smallest in eight months. However consumers did spend more on services and on large manufactured goods like cars. Consumer spending is closely watched because it accounts for 70 percent of economic activity.

Incomes also grew 0.1 percent, and wages and salaries were flat.

GETTING STARTED: The Dow Jones industrial average lost 21 point to 17,734 as of 11:20 a.m. The Standard & Poor’s 500 index lost three points to 2,085. The Nasdaq composite index fell five points to 5,069.

OCTOBER SURPRISE: After a steep drop in late August and a rocky September, stocks came back in a big way in October. The S&P 500 has risen for five consecutive weeks and is up 8.8 percent this month. If that holds up, it would be the index’s strongest month since October 2011.

ADDING TO THEIR NETWORK: The professional networking service LinkedIn delivered a strong third quarter. LinkedIn’s profit surpassed analyst estimates and revenue was more than expected. The stock gained $28.50, or 13.1 percent, to $245.50.

TAKING OFF: Online travel company Expedia rose $10.48, or 8.2 percent, to $137.54 22 after it said savings from its acquisition of Orbitz could be greater than it initially expected. Expedia bought Orbitz in September for $1.3 billion.

PARTLY CLOUDY: First Solar, the biggest U.S. solar company, advanced $5.15, or 10.1 percent, to $56.14 on a bigger-than-expected profit and more revenue. SolarCity, which installs solar panels in homes and businesses, fell after the company posted a bigger-than-expected loss and offered a fourth-quarter outlook that fell short of analyst forecasts. It plunged $8.59, or 22.6 percent, to $29.48.

OIL SLICK: Chevron says it will eliminate around 10 percent of its jobs, or up to 7,000 positions, and will also slash capital and exploratory spending as it deals with lower oil prices that are cutting deeply into profit. The second-largest oil company said Friday that its profit fell 64 percent in the third quarter.

UNDER THE WEATHER: CVS Health retreated $5.64, or 5.4 percent, to $98.16 after the drugstore chain and pharmacy benefits manager disclosed a disappointing third-quarter profit and its outlook for 2016 came up short of expectations.

ABBVIE GRABS GAINS: Drugmaker AbbVie surged $5.60, or 10.4 percent, to $59.70 as sales of its blockbuster anti-inflammatory Humira continued to rise. Humira is used to treat more than a dozen ailments included rheumatoid arthritis and psoriasis, and revenue totaled $3.65 billion in the third quarter. That was most of AbbVie’s revenue.

GOING TO THE ATM: Commercial bank KeyCorp said it will buy First Niagara Financial Group for $4.1 billion, and its shares sank 81 cents, or 6.1 percent, to $12.57.

VALEANT KEEPS SLIPPING: Shares of Valeant Pharmaceuticals, which skidded late Thursday, suffered more losses Friday as controversy around its drug prices and sales practices climbed. The stock sank $4.45, or 4 percent, to $107.05

Late Thursday CVS said it was cutting ties with a specialty pharmacy called Philidor, which is linked to Valeant and has been criticized as a “phantom pharmacy” used to artificially boost Valeant’s sales. The prospect of lost sales to CVS and Express Scripts, which also removed Philidor from its network after the market closed, hit Valeant’s shares. Valeant says Philidor has informed it that it will shut down as soon as possible.

BONDS: Bond prices rose. The yield on the 10-year Treasury note fell to 2.16 percent.

OVERSEAS: France’s CAC 40 fell 0.3 percent to 4,873.33 while Germany’s DAX shed 0.4 percent to 10,757.02 after official figures showed the eurozone’s inflation rate was a muted 0 percent in October. Britain’s FTSE 100 fell 0.4 percent to 6,371.07. The DAX is the best performing major European stock index in October, with a gain of almost 12 percent.

ENERGY: Benchmark U.S. crude fell 20 cents, or 0.4 percent, to $45.86 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, rose 10 cents, or 0.2 percent, to $48.90 a barrel in London.

CURRENCIES: The dollar slipped to 120.43 yen from 121.11 yen on Thursday. The euro rose to $1.1059 from $1.0974.