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U.S. stocks ended mostly higher on Friday on some strong corporate earnings and better-than-expected economic data that overshadowed worries of an aggressive round interest rate hikes by the Fed in the coming months. The S&P 500 and Nasdaq ended in positive territory, while the Dow closed slightly lower.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.1% or 21.42 points to close at 35,089.74 points after entering positive territory in the afternoon.
The S&P 500 added 0.5% or 23.09 points to finish at 4,500.53 points. Communication services, after swinging between positive and negative territory in the morning session. Consumer discretionary and financial stocks were the best performers, while materials were the worst.
The Consumer Discretionary Services Select Sector SPDR (XLY) gained 2.8%, while the Financials Select Sector SPDR (XLF) added 1.7%. The Materials Select Sector SPDR (XLB) declined 1.7%. Six the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq rose 1.6% or 219.19 points, to end at 14,098.01 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.63% to 23.22. A total of 11.07 billion shares were traded on Friday, lower than the last 20-session average of 12.37 billion.
Investors Continue to Worry About Rate Hikes
Investors have been worried for quite some time and trying to gauge how aggressively the Fed will go for rate hikes that are likely to beginning from March. This has been taking a toll on markets, with January turning out to be one of the worst months in a long time.
The same thing happened on Thursday that saw all the three major indexes taking a hit. However, stocks recovered on Friday after a bumpy ride as investors sentiments were lifted following on some positive January jobs data. This helped the S&P 500 bounce back into positive territory after trading in the red in the morning session.
Tech Stocks Drive Markets
Tech stocks, which have been suffering the most, on fears of Fed’s plans of an aggressive round of interest rate hikes bounced back on Friday, helping the broader market.
The rally was primarily driven by Amazon.com, Inc. (AMZN - Free Report) which posted impressive quarterly results. The e-commerce giant reported fourth-quarter 2021 earnings of $27.75 per share, which surpassed the Zacks Consensus Estimate of $3.89 per share. Shares of Amazon jumped rallied 13.5%. Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Quarterly results from a slew of other big names also further drove the rally. Shares of Snap Inc. (SNAP - Free Report) surged 58.8% after the company reported fourth-quarter 2021 earnings of $0.22 per share, which beat the Zacks Consensus Estimate of $0.09 per share.
Economic Data
Strong jobs data for the month of January helped investors regain confidence once again. The government said on Friday that the U.S. economy added 467,000 jobs in January, beating economists’ expectations of a minor gain of 150,000. This saw the 10-year Treasury yield to climb above 1.9%, its highest level since December 2019. The unemployment rate also rose to 4% from 3.9%.
Weekly Roundup
Despite witnessing some choppy trading sessions, all the three indexes managed to end in positive territory for the second straight week. The Dow gained around 1.1% for the week, while the S&P 500 added 1.6%. The Nasdaq was the best performer with a gain of 2.4% for the week.
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Stock Market News for Feb 7, 2022
U.S. stocks ended mostly higher on Friday on some strong corporate earnings and better-than-expected economic data that overshadowed worries of an aggressive round interest rate hikes by the Fed in the coming months. The S&P 500 and Nasdaq ended in positive territory, while the Dow closed slightly lower.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.1% or 21.42 points to close at 35,089.74 points after entering positive territory in the afternoon.
The S&P 500 added 0.5% or 23.09 points to finish at 4,500.53 points. Communication services, after swinging between positive and negative territory in the morning session. Consumer discretionary and financial stocks were the best performers, while materials were the worst.
The Consumer Discretionary Services Select Sector SPDR (XLY) gained 2.8%, while the Financials Select Sector SPDR (XLF) added 1.7%. The Materials Select Sector SPDR (XLB) declined 1.7%. Six the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq rose 1.6% or 219.19 points, to end at 14,098.01 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.63% to 23.22. A total of 11.07 billion shares were traded on Friday, lower than the last 20-session average of 12.37 billion.
Investors Continue to Worry About Rate Hikes
Investors have been worried for quite some time and trying to gauge how aggressively the Fed will go for rate hikes that are likely to beginning from March. This has been taking a toll on markets, with January turning out to be one of the worst months in a long time.
The same thing happened on Thursday that saw all the three major indexes taking a hit. However, stocks recovered on Friday after a bumpy ride as investors sentiments were lifted following on some positive January jobs data. This helped the S&P 500 bounce back into positive territory after trading in the red in the morning session.
Tech Stocks Drive Markets
Tech stocks, which have been suffering the most, on fears of Fed’s plans of an aggressive round of interest rate hikes bounced back on Friday, helping the broader market.
The rally was primarily driven by Amazon.com, Inc. (AMZN - Free Report) which posted impressive quarterly results. The e-commerce giant reported fourth-quarter 2021 earnings of $27.75 per share, which surpassed the Zacks Consensus Estimate of $3.89 per share. Shares of Amazon jumped rallied 13.5%. Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Quarterly results from a slew of other big names also further drove the rally. Shares of Snap Inc. (SNAP - Free Report) surged 58.8% after the company reported fourth-quarter 2021 earnings of $0.22 per share, which beat the Zacks Consensus Estimate of $0.09 per share.
Economic Data
Strong jobs data for the month of January helped investors regain confidence once again. The government said on Friday that the U.S. economy added 467,000 jobs in January, beating economists’ expectations of a minor gain of 150,000. This saw the 10-year Treasury yield to climb above 1.9%, its highest level since December 2019. The unemployment rate also rose to 4% from 3.9%.
Weekly Roundup
Despite witnessing some choppy trading sessions, all the three indexes managed to end in positive territory for the second straight week. The Dow gained around 1.1% for the week, while the S&P 500 added 1.6%. The Nasdaq was the best performer with a gain of 2.4% for the week.