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Nike and banks lift S&P 500 to record high close

Stock MarketsJun 25, 2021 09:41PM ET
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2/2 © Reuters. FILE PHOTO: Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the New York Stock Exchange (NYSE), May 22, 2020. REUTERS/Brendan McDermid 2/2

By Noel Randewich and Medha Singh

(Reuters) - The S&P 500 ended the week at record high on Friday, lifted by Nike and several banks, while weaker-than-expected inflation data eased worries about a sudden tapering in stimulus by the Federal Reserve.

Nike Inc (NYSE:NKE) surged 15.5% to an all-time high after the sneaker maker forecast fiscal full-year sales ahead of Wall Street estimates, helping the Dow lead among the three main indexes.

Bank of America (NYSE:BAC) climbed 1.9% and Wells Fargo (NYSE:WFC) rallied 2.7% after the Fed announced big banks have cleared stress test and will no longer face pandemic-related restrictions on buying back stock and paying dividends.

The S&P 500 financials index rose 1.3% and was the top performers among 11 sector indexes.

"Today is a bit of profit-taking in tech and a reallocation into the banks after the results of the stress tests," said Dennis Dick, a proprietary trader at Bright Trading LLC, adding he expects banks to soon announce increased dividends.

A bipartisan Senate deal on infrastructure spending embraced by U.S. President Joe Biden on Thursday continued to lift stocks, with the materials and industrials indexes increasing and helping the S&P 500 outperform the Nasdaq.

"The positive news from the infrastructure package favors the S&P 500 more than then Nasdaq. The Nasdaq does not pour cement into roads and put steel in bridges. That's the S&P 500," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

The latest personal consumption expenditures (PCE) data showed a measure of underlying inflation rose less than expected in May. Core PCE rose 3.4% year-over-year as expected, above the Fed's 2% flexible target.

Billionaire Richard Branson's spaceship company Virgin Galactic soared almost 40% and was Wall Street's second most traded company after receiving approval from the U.S. aviation safety regulator to fly people to space.

With the FTSE Russell reconstituting its indexes following a wild trading year marked by the pandemic and a "meme" stocks, volume on U.S. exchanges surged to 15.1 billion shares, versus the 11.2 billion average over the last 20 trading days.

(Graphic: S&P 500 versus U.S. 10-year Treasury yield, https://fingfx.thomsonreuters.com/gfx/mkt/yzdpxldylpx/spx_yield.PNG)

The Dow Jones Industrial Average rose 0.69% to end at 34,433.84 points, while the S&P 500 gained 0.33% to 4,280.69.

The Nasdaq Composite dropped 0.06%, to 14,360.39.

For the week, the S&P 500 gained 2.7%, the Dow added 3.4% and the Nasdaq gained 2.4%. It was the S&P 500's strongest week since early February and the Nasdaq's strongest since April.

FedEx Corp (NYSE:FDX) dropped 3.6% after the U.S. delivery firm missed 2022 earnings forecast due to hiring difficulties.

CarMax Inc (NYSE:KMX) jumped 6.7% after the used-car retailer topped Wall Street estimates for quarterly revenue, helped by strong demand as more people opted for personal vehicles over public transport due to the COVID-19 pandemic.

Advancing issues outnumbered declining ones on the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favored advancers.

The S&P 500 posted 32 new 52-week highs and no new lows; the Nasdaq Composite recorded 149 new highs and 14 new lows.

Nike and banks lift S&P 500 to record high close
 

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Comments (26)
Hannu Laurila
Hannu Laurila Jun 27, 2021 3:52AM ET
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nok
Jouni Matero
Jouni Jun 26, 2021 4:56PM ET
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Investors are witnessing the “biggest US fantasy trip of all time” in the stock market thanks to a clueless Federal Reserve, speedy stimulus and surprising success with Covid-19 vaccinations, according to Jeremy Grantham, financial historian and co-founder of the investment firm GMO. Well said.
Srinivasa Tangirala
Srinivasa Tangirala Jun 26, 2021 6:14AM ET
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I am scared of good news in market..good news always creates trap..Yes if USD goes 75 total exit from market
Eudon Hickey
Eudon Hickey Jun 26, 2021 3:07AM ET
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Satan looks after his kids
Junior Moreno
Junior Moreno Jun 25, 2021 8:06PM ET
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Every time the CBOE SKEW index hit 138, the SP500 dropped 10% shortly thereafter. Whenever it reached 157, the SP500 dropped 20% immediately. Today, the CBOE has just reached a record of 170, which indicates proportionally an immediate drop of the SP500 by more than 28%.    However, there is an additional data: In July 2020, the agency Fitch Ratings had already signaled the downgrade of the US rating due to its growing deficit. In 2011, when the US lost the AAA rating, the SP500 dropped 20%.    Therefore, with the CBOE SKEW index hitting a record 170 today, we could see from next Monday an immediate drop in the SP500 of more than 40%.
Jouni Matero
Jouni Jun 25, 2021 8:06PM ET
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Just checked Cboe skew data starting from 1990 and that's correct. Very interesting end of June ahead...
Jouni Matero
Jouni Jun 25, 2021 8:06PM ET
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Bulls thumbs down. Just go and read yourself Goldman's news about CBOE skew index and fasten your seatbelts.
Michael Dell
Michael Dell Jun 25, 2021 5:05PM ET
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What is preventing Dow from 35K,SP from 5K ?
Jouni Matero
Jouni Jun 25, 2021 5:05PM ET
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Nothing if FED so decides and pumps them
Todd Gray
Todd Gray Jun 25, 2021 5:05PM ET
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why no 6k? there's no reality in much of anything anymore.
Jon Bal
Jon Bal Jun 25, 2021 5:05PM ET
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only being able to margin 2:1
Barani Krishnan
Barani Krishnan Jun 25, 2021 4:49PM ET
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Nike? Literally a sprint for Wall Street, eh? (Face palm, face palm)
Jon Bal
Jon Bal Jun 25, 2021 4:49PM ET
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"its gotta be the shoes"
Dave Jones
Dave Jones Jun 25, 2021 4:47PM ET
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wow everything is awesome
Mitchel Pioneer
Mitchel Pioneer Jun 25, 2021 3:44PM ET
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The US working class is sent into another weekend with a financial knife in their back, as average holdings in retirement plans have been criminally inflated to catastrophic levels.  Assume the proper position America.
katya litski
katya litski Jun 25, 2021 3:34PM ET
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just do it
 
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