Investing.com – U.S. equities eked out gains to close at record highs on Friday, despite a slump in financials and energy stocks.
US equities started the day on the back foot, as all three major indexes opened lower after posting record closes in five of the previous 7 sessions. Thin trading volumes were observed throughout the session with investors seemingly reluctant to take large new positions ahead of the long weekend due to Presidents Day holiday on Monday.
Financials, mostly banks, which had led the recent rally on Wall Street, continued to pare gains as investors await an update from President Trump concerning his fiscal plans to boost the economy, which includes tax reform.
Donald Trump said Thursday in a press conference that his team would submit a health care proposal in March, with a tax reform plan to be submitted afterward.
Wells Fargo (NYSE:WFC.N), Bank of America (NYSE:NYSE:BAC.N), JPMorgan (NYSE:NYSE:JPM.N) and Citigroup (NYSE:C.N) closed lower, as the major U.S. banks slumped to a second day of losses.
Meanwhile, a surge in Kraft Heinz Co (NASDAQ:KHC) was the highlight of the session, after the U.S. food company made a surprise $143 billion bid for Unilever (L:LON:ULVR) that was later rebuffed.
The move comes amid a slow-down in growth in the global packaged food industry as consumers opt for healthier alternatives.
The Dow Jones Industrial Average gained 4 points to set a sixth straight record close at 20,624. The S&P 500 closed higher at 2347, up 0.1% while the Nasdaq Composite added 24 points to close at 5,838 up 0.46%.
The top S&P 500 gainers included Kraft Heinz Co (NASDAQ:KHC) up 10.6%, VF Corporation (NYSE:VFC) up 4.6%; and Colgate-Palmolive Company (NYSE:CL) added 4.3%.
Campbell Soup Company (NYSE:CPB) down 6.5%, Flowserve Corporation (NYSE:FLS) down 4.8% and General Mills (NYSE:GIS) slumped 3.8%, were among the worst S&P 500 performers of the session.