Closing Stock Market Summary
The stock market started the final session of the week on a higher note, building on gains through the day. A modest move lower in the late afternoon left the major indices off their highs, which had the S&P 500 just shy of the 5,100 level.
Earnings-related gains in Alphabet (GOOG 173.69, +14.75, +10.0%), which reached a new all-time high today, and Microsoft (MSFT 406.32, +7.28, +1.8%) provided a boost to the broader market. The Vanguard Mega Cap Growth ETF (MGK) rose 1.9%.
Outperforming semiconductor shares, benefiting from buzz around AI following the aforementioned earnings news, also acted as a boost to the broader market. The PHLX Semiconductor Index (SOX) jumped 2.6%. Intel (INTC 31.88, -3.23, -9.20%) was an exception from the SOX, sliding nearly 10% after reporting disappointing quarterly results. Competitor NVIDIA (NVDA 877.35, +51.03, +6.2%) jumped more than 6.0%.
Six of the S&P 500 sectors closed higher and five registered a decline. The communication services sector led the outperformed thanks to a big move higher in Alphabet. The information technology (+1.9%) and consumer discretionary (+1.3%) sectors were the next best performers, reflecting leadership from mega caps.
Meanwhile, the energy sector was among the weakest performers, clipped by a loss in Exxon Mobil (XOM 117.95, -3.37, -2.8%) after its earnings report. Chevron (CVX 165.89, +0.61, +0.4%) was also lower early in the session following its earnings report, but shares settled higher.
Market participants were also digesting the March Personal Income and Spending report that showed solid spending activity, but stalled progress on inflation. The market also received the final reading of the University of Michigan's Consumer Sentiment survey for April (actual 77.2; Briefing.com consensus 77.9; prior 77.9), which showed a weakening from the preliminary reading and an uptick in inflation expectations.
Treasuries had a calm response to the data and settled mostly higher today. The 10-yr note yield declined four basis points to 4.67% and the 2-yr note yield settled unchanged at 5.00%.
- S&P 500:+6.9% YTD
- Nasdaq Composite: +6.1% YTD
- S&P Midcap 400: +4.1% YTD
- Dow Jones Industrial Average: +1.5% YTD
- Russell 2000: -1.2% YTD
Reviewing today's economic data:
- March Personal Income 0.5% (consensus 0.5%); Prior 0.3%; March Personal Spending 0.8% (consensus 0.6%); Prior 0.8%; March PCE Prices 0.3% (consensus 0.3%); Prior 0.3%; March PCE Prices - Core 0.3% (consensus 0.3%); Prior 0.3%
- The key takeaway from the report is the recognition that progress on inflation has stalled. Therefore, market participants should continue to expect the Fed to stall on any rate cut.
- April Univ. of Michigan Consumer Sentiment - Final 77.2 (consensus 77.9); Prior 77.9
- The key takeaway from the report is that consumer sentiment is holding steady despite an uptick in inflation expectations. Presumably, that can be owed to the ongoing strength in the labor market and rising personal income.
Looking ahead, there is no notable U.S. economic data on Monday's calendar.