MARKET SNAPSHOT: Dow Posts 11th Straight Record; S&P 500 Sees Fifth Straight Weekly Gain
By Ryan Vlastelica
Dow's 11-day streak of records is longest since 1987
U.S. stocks staged a last-minute rally on Friday, with major indexes turning positive ahead of the closing bell and the Dow extended its record-setting streak as investors shrugged off concerns the rally was overdone.
Both the S&P 500 and the Nasdaq rose for a fifth straight week, while the Dow brought its string of weekly gains to three.
The Dow Jones Industrial Average rose 11.44 points, or less than 0.1%, to end at 20,821.76. The blue-chip average rose for an 11th straight day for the first time since 1992, as well as its 11th straight record closing high --the longest such streak since 1987. The Dow had traded in negative territory for essentially the entire session, only breaking into the green with seconds to spare.
"There was concern that the market was getting tired and that we were losing momentum, but there are still significant inflows, because now even the pessimists want a piece of the action. It's momentum driven, not fundamentally driven," said Lawrence Glazer, managing partner at Mayflower Advisors.
The S&P 500 rose 3.53 points, or 0.2%, to end at a record of 2,367.34. The Nasdaq Composite Index rose 9.8 points, or 0.2%, to end at 5,845.31.
The day's gains were broad, with nine of the 11 primary S&P 500 sectors ending higher. The only two that fell did so heavily, with financials down 0.8% and energy stocks down 0.9%. Both groups have been among the biggest postelection gainers.
Among the top drags on the Dow, Goldman Sachs Group Inc.(>> Goldman Sachs Group Inc) fell 1.5% while J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.) fell 0.9%. The third- and fourth-largest decliners were Exxon Mobil (>> Exxon Mobil Corporation),(>> Exxon Mobil Corporation)(>> Exxon Mobil Corporation) and Chevron Corp(>> Chevron Corporation) which lost 0.8% on the day.
"A lot of the inflows are just blindly into passive vehicles, which pushes the major averages higher. But there is weakness in the Trump-leadership stocks," Glazer said. "Financials are notably weak, Goldman is notably weak. That's due to both profit-taking and high valuations."
For the holiday-shortened week, major indexes posted gains. The Dow rose 1% on the week while the S&P added 0.7% and the Nasdaq rose 0.1%. That marked the fifth straight weekly advance for the S&P and the Nasdaq, and the third straight for the Dow.
The Dow is up nearly 9.1% over the past three months, with investors attributing gains largely to Trump's November election victory. Investors are betting that Trump's policies on taxes and regulation will accelerate economic growth and boost corporate earnings, but concerns are growing over the administration's ability to deliver on the tax plans.
Markets saw little impact from a speech Trump gave at the Conservative Political Action Conference, where he said that the U.S. tax code would be made more fair.
Investors are also looking ahead to an address that Trump is scheduled to make to Congress on Feb. 28, where he is expected to provide details on his highly anticipated tax reform proposals.
Separately, Federal Reserve Chairwoman Janet Yellen and Fed Vice Chairman Stanley Fischer are slated to speak on Friday next week. Investors will scour the comments for any hints as to when the central bank will raise interest rates.
Crude oil fell but held on to a weekly gain after data showed a further rise in the number of U.S. rigs drilling for crude. The U.S. benchmark on Thursday posted its highest close in more than a year and a half.
In the latest economic data, consumer sentiment fell from a 13-year high in February, while new-home sales posted a strong rebound in January.
Stock movers: Shares of Hewlett Packard Enterprise Co.(>> Hewlett Packard Enterprise Co) slumped 6.9% after the IT company late Thursday reported lower sales than expected and cut its earnings projections for the fiscal year.
Shares of RH(>> Restoration Hardware Holdings Inc), the company formerly known as Restoration Hardware, jumped 24% a day after it forecast higher-than-expected quarterly results .
Nordstrom Inc.(>> Nordstrom, Inc.) rallied 5.7% after the department store chain late Thursday reported earnings that beat forecasts . The retailer has been in focus following a recent decision by the company to drop Ivanka Trump's fashion label, citing poor sales. President Trump had tweeted that the company was treating his daughter "so unfairly," although the tweet didn't have a lasting negative impact on the stock.
Foot Locker Inc.(>> Foot Locker, Inc.) gained 9.4% after the shoe retailer reported profit that beat forecasts .
J.C. Penney Co. Inc.(>> J C Penney Company Inc) tumbled 5.8%, also after releasing results.
Other markets:Asian stock markets closed mostly lower, with Europe following the same trend in the early going.
Metals rose across the board, with silver on track for a ninth straight weeks of gains.
The ICE Dollar index rose 0.1%.