The US jobs report was stronger than expectations. That sent yields higher, but when the Michigan consumer sentiment also showed strength but with sharply lower inflation expectations, stocks rebounded. Although prices traded up and down and today, they are closing higher and in the process the:
- S&P index traded to a new 52-week high and closed at the highest level since January 2022
- Nasdaq index closed at a new 2023 high and closed at the highest level since January 2022
- Dow Industrial Average closed at its highest level since the end of December 2021
The small-cap Russell 2000 rose 12.56 points or 0.67% at 1880.81.
In addition, all the major indices closed higher for the sixth consecutive week. The Dow Industrial Average eked out a 0.01% gain – the smallest of gains but still a gain.
A look at the final numbers shows:
- Dow Industrial Average rose 130.49 points or 0.36% at 36247.80
- S&P index rose 18.78 points or 0.41% at 4604.36
- Nasdaq index closed 63.97 points or 0.45% at 14403.96
The Russell 2000 rose 0.97%
For the trading week:
- Dow Industrial Average rose 0.01%
- S&P index rose 0.21%
- Nasdaq index rose 0.69%
The so-called “Magnificent 7” mostly outperformed with the exception of Amazon and Alphabet. Alphabet moved lower on the day. Nvidia was the biggest winner with a gain of 1.95%:
- NVIDIA Corp (NVDA): Price $475.03, Change +$9.07, +1.95%
- Meta Platforms Inc (META): Price $332.71, Change +$6.12, +1.87%
- Microsoft Corp (MSFT): Price $374.33, Change +$3.38, +0.91%
- Apple Inc (AAPL): Price $195.64, Change +$1.47, +0.76%
- Tesla Inc (TSLA): Price $243.76, Change +$1.12, +0.46%
- Amazon.com Inc (AMZN): Price $147.35, Change +$0.55, +0.37%
- Alphabet Inc (GOOGL): Price $134.97, Change -$1.96, -1.43%
For the trading week the Magnificent 7 all moved higher with the exception of Microsoft:
- Nvidia +1.58%
- Meta +2.44%
- Microsoft -0.07%
- Apple +2.34%
- Tesla +2.10%
- Amazon +0.31%
- Alphabet +2.37%
Looking at the S&P components energy and information technology led the gainers (seven components rose). Consumer Staples, Utilities, and Real estate were the weakest:
- SPN (Energy): Price $623.21, Change +$6.87, +1.11%
- S5INFT (Information Technology Sector): Price $3302.75, Change +$29.54, +0.90%
- S5C0ND (Consumer Discretionary Sector): Price $1369.42, Change +$5.87, +0.43%
- SPF (S&P 500 Futures): Price $598.80, Change +$2.97, +0.50%
- S5INDU (Industrial Sector): Price $918.96, Change +$3.03, +0.33%
- S5MATR (Materials Sector): Price $513.86, Change +$1.70, +0.33%
- S5HLTH (Health Sector): Price $1535.67, Change +$2.76, +0.18%
- S5TELS (Telecommunication Services Sector): Price $237.51, Change -$0.37, -0.16%
- S5REAS (Real Estate Sector): Price $237.00, Change -$0.52, -0.22%
- S5UTIL (Utilities Sector): Price $319.57, Change -$0.69, -0.22%
- S5C0NS (Consumer Staples Sector): Price $737.74, Change -$4.86, -0.65%
Next week we will see if the string can extend to seven. The FOMC rate decision will be the biggest influencer. Higher stocks may keep the Fed chair from being too positive about rate policy/inflation into 2024.