Closing Stock Market SummaryThe S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.1%) closed at record highs on Friday, thanks to a strong finish ahead of a three-day weekend. The Russell 2000 increased 0.2%.
The economic reopening narrative shined throughout the session. Cyclical sectors outperformed, WTI crude futures ($59.47/bbl, +1.24, +2.1%) settled close to $60 per barrel, and the yield on the 10-yr Treasury note rose four basis points to 1.20% amid increased selling interest.
The higher oil prices and Treasury yields contributed to the relative strength in the S&P 500 energy (+1.4%) and financials (+1.0%) sectors, which were joined by the materials (+1.0%), industrials (+0.7%), and health care (+0.8%) sectors atop the standings. The latter benefited from a 12% earnings-driven gain in Illumina (ILMN 504.76, +53.54, +11.9%).
On the downside, the utilities (-0.8%) and real estate (-0.1%) sectors lagged in negative territory. Walt Disney (DIS 187.67, -3.24, -1.7%) weighed on the communication services sector (+0.1%) despite reporting positive earnings results and strong subscriber numbers.
Shares of NVIDIA (NVDA 598.45, -11.58, -1.9%) fell 2% after Bloomberg reported that Alphabet's (GOOG 2104.11, +8.22, +0.4%) Google, Microsoft (MSFT 244.99, +0.50, +0.2%), and Qualcomm (QCOM 147.98, +2.42, +1.7%) want antitrust officials to intervene in NVIDA's deal to purchase Arm Holdings. NVDA was one of the few decliners in the Philadelphia Semiconductor Index (+1.2%).
In other developments, the Senate is reportedly planning to fast-track the stimulus bill past individual committees, meaning it should reach the floor for a vote a bit sooner than previously expected. Separately, Charles Schwab (SCHW 58.19, +2.26, +4.0%) reported a 75% m/m increase in its total number of brokerage accounts.
The 2-yr yield decreased one basis point to 0.10%. The U.S. Dollar Index increased 0.1% to 90.46. The CBOE Volatility Index fell 6.0% to 19.97.
Reviewing Friday's economic data:
- The preliminary February reading of the University of Michigan Index of Consumer Sentiment fell to 76.2 (consensus 80.8) from the final reading of 79.0 in January.
- The key takeaway from the report is that the February drop was owed to lower expectations among households with incomes below $75,000.
Looking ahead, investors will receive the Empire State Manufacturing Survey for February and Net Long-Term TIC Flows for December when the market reopens on Tuesday. The market will be closed on Monday for Washington's Birthday.
- Russell 2000 +15.9% YTD
- Nasdaq Composite +9.4% YTD
- S&P 500 +4.8% YTD
- Dow Jones Industrial Average +2.8% YTD