Tech, communications stocks push U.S. indexes to more records
Wall Street capped a milestone-setting week Friday with a few more as modest gains nudged the major stock indexes to all-time highs.
The benchmark S&P 500 index also notched its second-straight weekly gain.
Technology stocks powered much of the market’s broad gains, along with communication services companies and banks. Energy sector stocks were the only decliners. Bond prices fell, sending yields higher.
Investors welcomed more strong quarterly results from banks. A report showing a December surge in new home construction, meanwhile, provided the latest encouraging snapshot on the U.S. economy. A solid retail sales report on Thursday revealed consumers are still spending at a healthy pace.
The latest batch of positive corporate earnings reports and ecomonic data helped keep investors in a buying mood after the midweek signing of an initial trade deal by the U.S. and China. Progress on trade has eased fears on Wall Street about the potential for the dispute to escalate further.
The S&P 500 index rose 12.81 points, or 0.4%, to 3,329.62. The benchmark index also set all-time highs on Monday, Wednesday and Thursday.
The Dow Jones Industrial Average gained 50.46 points, or 0.2%, to 29,348.10. The Nasdaq added 31.81 points, or 0.3%, to 9,388.94.
The Russell 2000 index of smaller company stocks dropped 5.58 points, or 0.3%, to 1,699.64.
Markets in Europe and Asia finished higher.
Bond prices fell, pushing yields higher. The yield on the 10-year Treasury rose to 1.82% from 1.8% late Thursday.
Financial markets are solidly higher just a few weeks into 2020 as trade disputes quiet down and the economic picture remains bright.
The S&P 500 is up 3.1% so far this year and technology stocks are once again leading the way with a gain of 5.9%. The index finished 2019 with a sharp 28.9% gain on a surge from the technology sector.
This week’s signing of a “Phase 1” trade deal has raised hopes on Wall Street that China and the U.S. will avoid any further escalations as they continue talking. U.S. election concerns and the ongoing impeachment of President Donald Trump have been both largely ignored by Wall Street, so far.
Still, the possibility that U.S. trade tensions could heat up again, whether against China or the European Union, and the U.S. presidential election, could result in heightened volatility for stocks this year, Nela Richardson, investment strategist at Edward Jones said.
Chipmaker Qualcomm led technology sector stocks higher Friday, climbing 4.5%.
Communications companies also rose. Google parent company Alphabet rose 2% a day after becoming the latest tech giant to cross the $1 trillion valuation mark, joining Apple and Microsoft. Comcast gained 1.3% after its NBCUniversal unit launched a video streaming service, Peacock.
Citizens Financial led financial sector stocks higher, rising 3.2%. State Street rose 1.8%.
Several homebuilders rose after the Commerce Department said that construction of new homes surged in
December to the highest level in 13 years. The strong finish caps a year in which falling mortgage rates and a strong labor market helped lift the prospects of the housing industry. Hovnanian Enterprises led builders higher, climbing 2.5%.
Benchmark crude oil rose 2 cents to settle at $58.54 a barrel. Brent crude oil, the international standard, gained 23 cents to close at $64.85 a barrel. Wholesale gasoline fell 1 cent to $1.64 per gallon. Heating oil declined 1 cent to $1.86 per gallon. Natural gas fell 7 cents to $2.00 per 1,000 cubic feet.
U.S. stock markets will be closed on Monday in observance of the Martin Luther King Jr. holiday.