| | | S&P 500 ends week on high note, nearly sets record highs
25-Oct-19 16:15 ET
Dow +152.53 at 26958.06, Nasdaq +57.32 at 8243.12, S&P +12.26 at 3022.55
briefing.com
[BRIEFING.COM] The S&P 500 almost set new record highs on Friday, but it still increased 0.4% amid strength in shares of semiconductor companies and some optimism on the U.S.-China trade front. The Dow Jones Industrial Average (+0.6%), Nasdaq Composite (+0.7%), and Russell 2000 (+0.5%) outpaced the benchmark index.
Intel (INTC 56.46, +4.23, +8.1%) was among today's most influential companies after it beat top and bottom-line estimates and issued upside guidance. Its 8% gain, the buying interest in other semiconductor stocks, and an earnings-driven gain in Visa (V 177.85, +1.69, +1.0%) all contributed to leadership of the S&P 500 information technology sector (+1.2%).
The good news quickly helped the market overcome a sluggish start that was attributed early weakness in Amazon (AMZN 1761.33, -19.45, -1.1%) after it missed profit estimates and provided a cautious outlook for the holiday quarter. AMZN pared losses and the market pushed higher after the USTR office said it was close to finalizing some sections of a "Phase One" trade deal with China.
The trade update presumably benefited other cyclical sectors like materials (+1.0%), energy (+0.8%), and industrials (+0.6%). It also reduced demand for U.S. Treasuries, which sent yields higher in a trade that undercut the performances of the rate-sensitive real estate (-1.3%) and utilities (-1.1%) sectors.
The 2-yr yield rose five basis points to 1.63%, and the 10-yr yield rose four basis points to 1.80%. The U.S. Dollar Index increased 0.3% to 97.83. WTI crude increased 0.4%, or $0.21, to $56.44/bbl.
A closer look inside the utilities space showed the group was also struggling from industry-specific issues. Edison (EIX 66.05, -6.14, -8.5%) and Sempra Energy (SRE 143.94, -4.12, -2.8%) fell on concerns about more power outages in California. PG&E (PCG), meanwhile, acknowledged that one of its transmission lines fell in the area where the Kincade wildfire started, sparking investor concerns that it could face additional liabilities.
Separately, Dow component Verizon (VZ 60.37, -0.21, -0.4%) reported better-than-expected earnings results, but shares ended the day lower.
Friday's economic data was limited to the final reading for the University of Michigan's Index of Consumer Sentiment for October:
- The University of Michigan's Index of Consumer Sentiment checked in at 95.5 with the final reading for October (Briefing.com consensus 95.8) versus the preliminary reading of 96.0 and the final reading of 93.2 for September.
- The key takeaway from the report is that it shows consumer sentiment held up just fine in October, as positive feelings about income and job growth helped drown out the headline volatility involving trade/tariff issues and the impeachment inquiry.
Looking ahead, investors will receive the Advance reports for International Trade in Goods, Retail Inventories and Wholesale Inventories for September on Monday.
- Nasdaq Composite +24.2% YTD
- S&P 500 +20.6% YTD
- Russell 2000 +15.6% YTD
- Dow Jones Industrial Average +15.6% YTD
Market Snapshot
| Dow | 26958.06 | +152.53 | (0.57%) | | Nasdaq | 8243.12 | +57.32 | (0.70%) | | SP 500 | 3022.55 | +12.26 | (0.41%) | | 10-yr Note | -3/32 | 1.797 |
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| | NYSE | Adv 1621 | Dec 1237 | Vol 778.8 mln | | Nasdaq | Adv 1878 | Dec 1179 | Vol 1.9 bln |
Industry Watch
| Strong: Information Technology, Materials, Energy |
| | Weak: Utilities, Real Estate, Consumer Staples |
Moving the Market
-- S&P 500 nearly sets new record highs
-- USTR office said it is close to finalizing some sections of a "Phase One" trade deal with China
-- Strength in the semiconductor space after Intel (INTC) beat estimates, issued upside guidance
-- Amazon (AMZN) missed earnings estimates, provided cautious outlook
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