Wall Street adds more to its big January after strong week
NEW YORK – A strong week for Wall Street closed out with modest gains Friday, sending the stock market to its highest level since early December.
The S&P 500 rose 0.2% to clinch its third winning week in the last four and was near its highest level since the summer, before fading at the end of the day. It’s rallied through January on growing belief inflation is on a steady downswing, hopefully leading to less pressure on the economy and markets.
The Dow Jones Industrial Average rose 28 points, or 0.1%, while the Nasdaq composite gained 0.9%.
Helping to lead the way was American Express, which jumped 10.5% despite reporting weaker profit and revenue for the latest quarter than expected. It gave a forecast for earnings through 2023 that topped Wall Street’s expectations and announced a planned increase to its dividend.
Another big gain for Tesla’s stock also supported the market. It rose 11% following its stronger-than-expected profit report for the end of 2022 released earlier in the week.
They helped offset a 6.4% loss for Intel following a jarring warning from the chipmaker. Not only did its revenue and earnings fall short of expectations last quarter, it also gave a forecast for revenue this quarter more than $2 billion below analysts’ expectations.
All told, the S&P 500 rose 10.13 points to 4,070.56. The Dow climbed 28.67 to 33,978.08, and the Nasdaq gained 109.30 to 11,621.71.
Hasbro fell 8.1% after saying it “underperformed” in this past holiday shopping season and will likely report a 17% drop in revenue for the fourth quarter. The company will cut about 1,000 jobs to reduce costs.
The yield on the 10-year Treasury, which sets rates for mortgages and other important loans, held steady at 3.51%.
The two-year yield, which moves more on expectations for Fed actions, held at 4.19%.
Next week could be another busy one for markets, with several high-profile events on top of the Fed’s announcement. The European Central Bank will give its latest decision on rates, the U.S. government will release its latest monthly check on the jobs market and more than 100 companies in the S&P 500 will report their quarterly results.
In stock markets overseas, India’s Sensex fell 1.5% as the Adani Group was again hit by heavy selling. Shares in seven Adani companies have plunged this week, wiping out billions of dollars in market value, after short-selling firm Hindenburg Research said it was betting against the conglomerate, which has holdings in energy, data transmission, construction and other major industries.
The Adani Group said it was considering legal action against Hindenburg following its allegations of stock market manipulation and accounting fraud.
Gold for February delivery fell 60 cents to $1,929.40 an ounce. Silver for March delivery fell 40 cents to $23.62 an ounce and March copper fell 5 cents to $4.22 a pound.
The dollar fell to 129.91 Japanese yen from 130.23 yen. The euro fell to $1.0868 from $1.0889.