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S&P 500, Dow Hit Records to End Week in Style Ahead of Earnings Season

Stock MarketsApr 09, 2021 04:14PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 and Dow closed at record highs Friday, on a wave of late-buying in tech and strength in banking stocks as investors look ahead to the start of quarterly earnings season next week.

The S&P 500 rose 0.73%, to close at a record level of 4,127.09, the Dow Jones Industrial Average rose 0.89%, notching 297 points and closing at an all-time high of 33,800.60. The Nasdaq Composite was up 0.51%.

The Labor Department said Friday its producer price index for final demand increased 1% last month, a two-month high and above economists’ forecasts for 0.5%.

The latest signs of inflation, boosted U.S. bond yields, and briefly exerted pressure on growth sectors like tech. The spike in yields ran out of steam, helping tech claw back losses as the Federal Reserve has persistently downplayed the risk of runway inflation. 

"[T]here would be upward pressure on prices [from supply chain bottlenecks] that may be passed onto the consumer ... but we think that the effect would be temporary," Fed Chairman Jerome Powell said at virtual IMF panel discussion on Thursday.

 
“The rising costs that consumers will likely have to bear will not be repeated as the supply chain will adopt and become more efficient,” he added.
 
The 10-year yields closed near its highs of the day, but the outlook for rates is not one centered on big moves in either direction, suggesting a disorderly climb in the yields -  fears of which have previously kept growth and tech stocks in check - is unlikely.   
 

"Our target range for the 10-year Treasury yield is between 1.50% to 2% by year-end," Johan Grahn, the head of ETF Strategy at Allianz Investment Management said Friday in an interview with Investing.com. "These yields are still attractive [relative to many other sovereign bonds], so there is still going to be buying pressure for US Treasuries."

Microsoft (NASDAQ:MSFT), Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) were higher. Facebook (NASDAQ:FB) was lower.

Amazon.com (NASDAQ:AMZN) rose 2% as the e-commerce giant defeated an attempt to unionize at its Bessemer, Alabama, fulfillment center.

Financials were led higher by regional banking stocks ahead of key quarterly results from major Wall Street banks expected next week.

State Street (NYSE:STT), Zions Bancorporation (NASDAQ:ZION) and Citizens Financial (NYSE:CFG) group were among the top gainers.

JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Wells Fargo & Company (NYSE:WFC) and Goldman Sachs (NYSE:GS) are set to report results next week. The banks are expected to show strong performance from trading and deals activity, with the latter boosted by the special purpose acquisition company, or SPAC, frenzy.

In industrials, Boeing (NYSE:BA) was in the spotlight after the aircraft maker reportedly urged 16 airline customers to ground the company’s 737 Max jets, citing electrical issues. The 737 Max aircraft was re-certified airworthy in November following a months-long grounding after two deadly crashes.

In other news, Tesla (NASDAQ:TSLA) appears to be reaping rewards for its big play on China – following the launch of its Giga Factory in 2019 – as the electric automaker sold 69,280 Shanghai-made Model 3s and Model Ys, according to an industry report.

S&P 500, Dow Hit Records to End Week in Style Ahead of Earnings Season
 

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Comments (9)
Adam Paine
Adam Paine Apr 10, 2021 12:19PM ET
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I do find it interesting that relevant skeptical posts are being buried by spam. Coincidence?
perplexed76 .
perplexed76 . Apr 10, 2021 12:30AM ET
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they buy bank stocks and then they will say we have great "earnings"!
Ben Ramirez
Ben Ramirez Apr 09, 2021 8:57PM ET
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Manipulated as *****
Dave Jones
Dave Jones Apr 09, 2021 8:06PM ET
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style now LMAO!
Adam Paine
Adam Paine Apr 09, 2021 6:45PM ET
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pop
Çéè ßlã Çk
Çéè ßlã Çk Apr 09, 2021 6:45PM ET
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Hi I do sell bitcoin if you are interested or you know someone that want to buy
Cathy Bartlett
Cathy Bartlett Apr 09, 2021 5:42PM ET
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Union in Alabama must have used dominion voting machines. Fair and free election vote???? Not according to the workers union... Nothing too see her folks, let's just move on...
Abdullah Rifat
Abdullah Rifat Apr 09, 2021 4:31PM ET
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powell won't stop until he drives by billions of homeless on his commute
Casador Del Oso
Casador Del Oso Apr 09, 2021 4:26PM ET
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The rising costs that consumers will likely have to bear will be the direct result of tax increases implemented by the Biden administration. Thanks Joe.
CHAD TENDIES
CHAD TENDIES Apr 09, 2021 4:21PM ET
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At this point it is just hilarious
Francesco Lucchesi
Francesco Lucchesi Apr 09, 2021 4:21PM ET
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it's truly a joke yes
Ben Ramirez
Ben Ramirez Apr 09, 2021 4:21PM ET
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Just play it and profit.  All you can do now.
 
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