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Wall Street closed higher on Thursday, driven by encouraging economic data. The S&P 500 managed a record close for the fifth straight session. All of the major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 242.74 points, or 0.6%, to close at 38,049.13. Twenty-six components of the 30-stock index ended in positive territory, while four ended in negative.
The tech-heavy Nasdaq Composite gained 28.58 points, or 0.2%, to close at 15,510.50.
The S&P 500 added 25.61 points, or 0.5%, to close at 4,894.16. Nine of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Communication Services Select Sector SPDR (XLC) advanced 2.3%, 1.8% and 1.6%, respectively, while the Consumer Discretionary Select Sector SPDR (XLY) declined 1.2%.
The fear-gauge CBOE Volatility Index (VIX) increased 2.4% to 13.45. A total of 11.5 billion shares were traded on Thursday, in line with the last 20-session average. Advancing issues outnumbered the declining ones on the S&P 500 by a 4.0-to-one ratio. The S&P 500 recorded 50 new highs and two new lows, while the Nasdaq posted 97 new highs and 119 new lows.
The S&P 500 Records its Fifth Consecutive Peak
The S&P 500 recently hit its record high in over two years and has since sustained the momentum. On Thursday, the benchmark index closed the day on a fifth straight record high. Currently, market participants are keeping a keen watch on fourth-quarter earnings to gauge whether this momentum will continue.
U.S. Economy Grows Faster Than Expected
On the basis of strong consumer spending, the U.S. economy grew faster than expected in fourth-quarter 2023 and managed to keep at bay any murmurs about a recession that was dominating the markets while the Fed’s tight monetary policy regime was dragging on.
The advance fourth-quarter GDP report from the Commerce Department showed inflation pressures subsiding further. However, it also suggested that March might be too soon for the U.S. central bank to start cutting interest rates. GDP estimate for the quarter currently stands at a 3.3% increase compared to the consensus estimate of 2% for the period. The advance for the prior quarter remained unrevised at 4.9%. The market took kindly to the news and stocks broadly rallied.
The Labor Department said on Thursday that initial jobless claims rose to 214,000, increasing 25,000 for the week ending Jan 20. The previous week's level was revised up by 2,000 from 187,000 to 189,000. The four-week moving average decreased to 202,250, marking a fall of 1,500 from the previous week. The prior week's average was revised up by 500 to 203,750.
Continuing claims came in at 1,833,000 for the week ending Jan 13, increasing 27,000 from the previous week’s unrevised level. The four-week moving average was 1,835,000, a decrease of 13,250 from the previous week's revised average. Last week's average was revised up by 250 from 1,848,000 to 1,848,250.
The U.S. Census Bureau reported that durable goods orders remained virtually unchanged for December. In November, they had gone up by 5.5%.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales for December had come in at 664,000. The number for November had been revised up to 615,000.
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Stock Market News for Jan 26, 2024
Wall Street closed higher on Thursday, driven by encouraging economic data. The S&P 500 managed a record close for the fifth straight session. All of the major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 242.74 points, or 0.6%, to close at 38,049.13. Twenty-six components of the 30-stock index ended in positive territory, while four ended in negative.
The tech-heavy Nasdaq Composite gained 28.58 points, or 0.2%, to close at 15,510.50.
The S&P 500 added 25.61 points, or 0.5%, to close at 4,894.16. Nine of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Communication Services Select Sector SPDR (XLC) advanced 2.3%, 1.8% and 1.6%, respectively, while the Consumer Discretionary Select Sector SPDR (XLY) declined 1.2%.
The fear-gauge CBOE Volatility Index (VIX) increased 2.4% to 13.45. A total of 11.5 billion shares were traded on Thursday, in line with the last 20-session average. Advancing issues outnumbered the declining ones on the S&P 500 by a 4.0-to-one ratio. The S&P 500 recorded 50 new highs and two new lows, while the Nasdaq posted 97 new highs and 119 new lows.
The S&P 500 Records its Fifth Consecutive Peak
The S&P 500 recently hit its record high in over two years and has since sustained the momentum. On Thursday, the benchmark index closed the day on a fifth straight record high. Currently, market participants are keeping a keen watch on fourth-quarter earnings to gauge whether this momentum will continue.
U.S. Economy Grows Faster Than Expected
On the basis of strong consumer spending, the U.S. economy grew faster than expected in fourth-quarter 2023 and managed to keep at bay any murmurs about a recession that was dominating the markets while the Fed’s tight monetary policy regime was dragging on.
The advance fourth-quarter GDP report from the Commerce Department showed inflation pressures subsiding further. However, it also suggested that March might be too soon for the U.S. central bank to start cutting interest rates. GDP estimate for the quarter currently stands at a 3.3% increase compared to the consensus estimate of 2% for the period. The advance for the prior quarter remained unrevised at 4.9%. The market took kindly to the news and stocks broadly rallied.
Consequently, shares of Netflix, Inc. (NFLX - Free Report) and Caterpillar Inc. (CAT - Free Report) rose 3.1% and 3.5%, respectively. Netflix currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
The Labor Department said on Thursday that initial jobless claims rose to 214,000, increasing 25,000 for the week ending Jan 20. The previous week's level was revised up by 2,000 from 187,000 to 189,000. The four-week moving average decreased to 202,250, marking a fall of 1,500 from the previous week. The prior week's average was revised up by 500 to 203,750.
Continuing claims came in at 1,833,000 for the week ending Jan 13, increasing 27,000 from the previous week’s unrevised level. The four-week moving average was 1,835,000, a decrease of 13,250 from the previous week's revised average. Last week's average was revised up by 250 from 1,848,000 to 1,848,250.
The U.S. Census Bureau reported that durable goods orders remained virtually unchanged for December. In November, they had gone up by 5.5%.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales for December had come in at 664,000. The number for November had been revised up to 615,000.