S&P 500, Dow climb for third day and close at records

S&P 500, Dow climb for third day and close at records

© Reuters. FILE PHOTO: New York Stock Exchange (NYSE) building after the start of Thursday’s trading session in New York

By Chuck Mikolajczak

(Reuters) – The and the Dow rose on Friday to close at record highs, posting a third straight weekly rise partly on lift from growth stocks, with a late-day rally building gains ahead of quarterly earnings season next week.”

Growth names have found their footing over the past two weeks after being outperformed by value stocks for most of the year. A pullback in the from a 14-month high hit in late March encouraged buying in growth.

Data showed U.S. producer prices increased more than expected in March, bringing the largest annual gain in 9-1/2 years.

Many investors now expect higher inflation as vaccine rollouts help the U.S. economy rebound from coronavirus-fueled lockdowns, yet stocks showed little concern as the Federal Reserve has maintained it will allow inflation to overshoot its target.

“This is why all week long (Powell) was jawboning, he made sure everyone understood they were expecting a spike and they are ready for it, it wasn’t a surprise,” said Ken Polcari, managing partner at Kace Capital Advisors in Jupiter, Florida.

“Which is why the market is not backing off, because he succeeded in jawboning the anxiety and stopped people from getting really panicked about it.”

Unofficially, the rose 299.21 points, or 0.89%, to 33,802.78, the S&P 500 gained 31.58 points, or 0.77%, to 4,128.75 and the added 70.88 points, or 0.51%, to 13,900.19.

The banks will kick off first-quarter earnings season next week with Goldman Sachs (NYSE:), JPMorgan (NYSE:) and wells Fargo scheduled to report on Wednesday. Analysts expect profits for S&P 500 firms to show a 25% jump from a year earlier, according to Refinitiv IBES data. That would be the strongest performance for the quarter since 2018.

Megacap names such as Apple (NASDAQ:), Amazon (NASDAQ:) and Microsoft (NASDAQ:), which are in the growth index, advanced to pace the S&P 500. Amazon shares rose as warehouse workers in Alabama rejected an attempt to form a union.

The Russell 1000 growth index, made up largely of technology stocks, outperformed its value counterpart, made up mostly of cyclical stocks such as financials and energy names, for a second week following the pullback in longer-dated Treasury yields.

Bank of America (NYSE:)’s weekly fund flow figures showed investors have pumped more money into equities over the past five months than in the last 12 years.

Gains in Honeywell (NYSE:) helped lift the Dow as Jefferies (NYSE:) and J.P. Morgan raised their price targets on the U.S. aero parts maker’s shares.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Category Latest Posts