Benchmarks finished in positive territory on Friday after gains in utilities stocks offset declines in financials and energy sectors. The Dow reached its highest level for 11 consecutive sessions, its longest such streak since 1987. The blue-chip index also increased for 11 straight trading days for the first time in 25 years.
Although all the three key indexes ended in the green on Friday, the gains were minimal owing to concerns among investors over the time frame in which President Trump will implement his economic policies. Meanwhile, the major indexes registered weekly gains, with the Dow increased for three straight weeks, the S&P 500 and Nasdaq posted fifth consecutive weekly gains.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) increased 0.1%, to close at 20,821.76. The S&P 500 rose 0.2% to close at 2,367.34. The tech-laden Nasdaq Composite Index closed at 5,845.31, also gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) declined 2.1% to settle at 11.47. A total of around 6.75 billion shares were traded on Friday lower than the last 20-session average of 6.8 billion shares. Advancers outpaced declining stocks on the NYSE.
What Boosted The Benchmarks?
Shares of Public Service Enterprise Group (NYSE:PEG) Incorporated ( PEG) rose 3.1% after the company reported fourth-quarter adjusted operating earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 52 cents. Earnings also improved 8% on a year-over-year basis. (Read More: Public Service Tops Q4 Earnings, Revenues Drop Y/Y )
Gains in Public Service Enterprise Group led the Utilities Select Sector SPDR (XLU) to advance 1.5% and emerge as the best performing sector among the S&P 500. Some of its key holdings including Exelon Corporation (NYSE:EXC) ( EXC) and FirstEnergy Corp. (FE) rose 3.3% and 3%, respectively.
Friday’s gains were mostly broad-based with most of the major S&P 500 sectors closed in the green while financial and energy sectors ended in negative territory. Both these two sectors were major performers after Trump’s victory in U.S. Presidential election.
Recently, Trump’s polices including tax cuts, repealing regulations and pickup in infrastructure outlays restored expectations of a pro-growth agenda. However, investors remained skeptical on Friday over Trump administration’s ability to implement his economic policies this year and wait for clues as Trump is set to speak at a joint Congress session Tuesday night.
The Financial Select Sector SPDR (XLF) fell 0.8%. Key component from this sector like Sachs Group, Inc. ( GS) and JPMorgan Chase & Co (NYSE:JPM). (JPM) decreased 1.5% and 0.9%, respectively. Both the Dow components hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Additionally, oil prices fell after Baker Hughes Incorporated (NYSE:BHI) ( BHI) reported that last week U.S. oil rig counts increased, by 5 rigs to 602, registering its six consecutive weeks of gains. Both WTI and Brent crude fell 0.9% and 1.1% to $53.99 per barrel and $55.99 a barrel, respectively.
Decline in oil prices led the Energy Select Sector SPDR (XLE (NYSE:XLE)) to fall 1% and emerge as the worst performing sector in the S&P 500. Some of its key holdings including Chevron Corporation (NYSE:CVX) ( CVX) and Exxon Mobil Corporation (NYSE:XOM) (XOM) fell 0.8% and 0.9%, respectively.
Weekly Roundup
For the week, the Dow, S&P 500 and Nasdaq rose 1%, 0.7% and 0.1%, respectively after President Trump vowed to bring back millions of jobs to the U.S. Additionally, upbeat earnings reports from Wal-Mart (NYSE:WMT) and Home Depot (NYSE:HD) also boosted investor sentiment. However, some of last week’s gains were curtailed after minutes from the Fed’s last meeting showed that the central bank is comfortable in hiking rates “fairly soon”.
Stocks That Made Headlines
Telephone & Data Systems Posts In-Line Earnings in Q4
Telephone & Data Systems Inc. ( TDS) reported mixed financial results in the fourth quarter of 2016. ( Read More )
United States Cellular Tops Q4 Earnings, Revenues Lag
United States Cellular Corp. ( USM) posted mixed financial results in the fourth quarter of 2016. ( Read More )
American Tower Beats on Q4 Earnings, Revenues Lag
American Tower Corp. ( AMT) reported mixed financial numbers in the fourth quarter of 2016. ( Read More )
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Exelon Corporation (EXC): Free Stock Analysis Report
FirstEnergy Corporation (NYSE:FE): Free Stock Analysis Report
Goldman Sachs Group, Inc. (The) (NYSE:GS): Free Stock Analysis Report
J P Morgan Chase & Co (JPM): Free Stock Analysis Report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Baker Hughes Incorporated (BHI): Free Stock Analysis Report
Telephone and Data Systems, Inc. (TDS): Free Stock Analysis Report
United States Cellular Corporation (USM): Free Stock Analysis Report
American Tower Corporation (REIT) (AMT): Free Stock Analysis Report
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