Traders on the floor of the New York Stock Exchange.
The S&P 500 and Dow Jones Industrial Average hit new all-time highs on Friday as both indices appeared to be ending a positive week in full swing.
The Dow, S&P 500 and Nasdaq Composite all traded within 0.15% of their respective flatlines. The S&P 500 and the Dow hit new intraday records in the minutes following the opening bell before slipping their gains.
Disney shares rose nearly 2% after the company reported a profit breakout in the third quarter, which helped lift the Dow to a new high. The media giant has exceeded Wall Street’s expectations for Disney + subscriber growth, overall sales and earnings.
Among the S&P sectors, consumer staples and utilities did better as Tyson Foods rose 2.7% and FirstEnergy rose 1%. Energy and industrials again underperformed, with Hess down 1.2% and United Rentals down 2%. Ebay shares were up 5.3%.
The blue chip Dow and S&P 500 are well on their way to ending a successful week after gaining 0.8% and 0.6% respectively through Thursday. The tech-heavy Nasdaq Composite underperformed this week, down 0.1%.
“Towards the end of the week, the SPX continued to rise amid mixed economic data and a lack of consensus among Fed officials on when to start throttling,” JPMorgan’s Andrew Tyler wrote. “The bull case remains intact, although the leadership of factors and sectors remains inconsistent.”
Investors digested mixed economic data.
The University of Michigan’s sentiment for August was just 70.2, the weakest since December 2011. BMO Capital Markets strategist Ian Lyngen said the low figure reflects not only higher prices but also the increase in the number of delta variants.
The university’s report reads: “Consumers have correctly argued that the performance of the economy will weaken over the next few months, but the extraordinary surge in negative economic valuations also reflects an emotional response, largely out of disappointed hopes that the pandemic is soon would end. “
On Thursday, the Department of Labor said that weekly jobless claims were 375,000 last week, which was estimates and declined for the third straight week. Meanwhile, the producer price index excluding volatile food, trade services and energy components rose 0.9% last month, compared to a forecast of 0.5%.
“The hot PPI / house price numbers have taken some luster from Wednesday’s CPI-induced ‘inflation has peaked’ and this has resulted in very modest profit taking in cyclical groups after two days of outperformance,” said Adam Crisafulli, founder of Vital Knowledge said in a note.
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Shares rise to records due to an excellent earnings season.
According to Refinitiv, earnings growth of 92.9% compared to the previous year is expected. So far, about 90% of the S&P 500 companies have filed their quarterly reports, and about 88% of them have surpassed Wall Street analysts’ earnings estimates, according to Refinitiv.
Airbnb shares fell 1.1% after the travel company warned of volatility due to the Covid Delta variant.