Dow rises for the eighth consecutive week, S & P 500 posts a weekly advance of 2.5%



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US stocks rallied Friday to consolidate another week of gains.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The S & P 500 (^ GSPC) increased by 1.09%, or 29.86 points, at market close and closed the week up 2.5%. The Dow (DJI) increased by 1.75%, or 444.33 points, while the Nasdaq (^ IXIC) rose 0.61%, or 45.46 points on Friday. The Dow and Nasdaq each recorded an eighth consecutive week of gains, while the S & P 500 finished higher for a third straight week. "Data-reactid =" 16 "> The S & P 500 (^ GSPC) rose 1.09%, or 29.86 The Dow (^ DJI) rose 1.75%, or 444.33 points, while the Nasdaq (^ IXIC) rose 0.61%, or 45.46 points on Friday.The Dow and the Nasdaq each recorded an eighth consecutive week of gains, while the S & P 500 index finished up for a third consecutive week.

Positive business paper helped boost stocks.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to China, & nbsp;Xinhua News AgencyChinese President Xi Jinping said the US-China trade talks will continue in Washington next week after a series of talks in Beijing this week, with US Treasury Secretary Steven Mnuchin and the US Trade Representative , Robert Lighthizer. The two sides are trying to reach an agreement before the tariff rate on billions of dollars of Chinese goods is raised on March 2. However, President Donald Trump recently suggested that he would consider extending this period as trade negotiations continue. "data-reactid =" 18 "> According to the Xinhua News Agency, Chinese President Xi Jinping said the US-China trade talks will continue in Washington next week after a series of talks in Beijing this week. week with US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, said the two sides were trying to reach an agreement before the tariff rate on Chinese goods, worth billions of dollars, would increase March 2. Trade negotiations continue.

Elsewhere in Washington, congressional negotiators managed to avoid a further partial shutdown of the government after Trump signed a finance bill providing for the granting of credit to many government agencies. The agreement, however, provides funds for Trump's proposed border wall, with the exception of the $ 5.7 billion it claimed. Trump Friday also cleared a national emergency allowing him to redirect funds to the wall.

Corporate earnings also continue to boost the stock market, with about 85% of the S & P 500's market capitalization having reported its fourth quarter results as of Friday morning. Profit is up 3.3%, with 63% of companies exceeding their estimates, said Jonathan Golub, Credit Suisse's US equity strategist, in an e-mail. This compares with 4.9% and 70% over the last three years.

Golub added that the energy sector should generate the strongest earnings-per-share growth of the major sectors. "4Q's earnings exceeded expectations for Oilfield Services, thanks to increased North American fracking activity and demand overseas," he said.

The energy sector was one of the leaders of the S & P 500 index at Thursday's close of the market, registering gains of 12.79% since the beginning of the year, a little less than 3 percentage points from the best performance of the industry sector. This compares to the 2018 calendar year, when the energy sector was lagging behind the steep drop in oil prices in the fourth quarter.

While the majority of the market capitalization of the S & P 500 has released results, investors still have profits from brick and mortar retail in the next two weeks. Online sales continued to put pressure on traditional retailers, department stores, clothing and electronics with adverse barriers, Golub said.

These retail sales results follow a Census Bureau report that US retail sales in December saw the largest decline since September 2009. The results had pulled down the top three indices on Thursday.

STOCKS: PepsiCo provides weak advice

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "PepsiCo (DYNAMISM) published roughly identical fourth quarter results with the expectations of analysts. The food and beverage giant posted adjusted earnings per share of $ 1.49 for sales of $ 19.52 billion. However, the company – much like the Coca-Cola beverage company counterpart (KOPepsiCo said it hoped to earn $ 5.50 per share in 2019, lower than its EPS of $ 5.66 for 2018 and $ 5.85 per share for 2019 on Wall Street, according to Bloomberg data. In the fourth quarter, the company's North America Beverages unit, which accounts for approximately one-third of sales, reported a 12% decline in operating income, which the company believes is due to some increases in operating costs, including the percentage increase in commodity costs and advertising and marketing expenses. "" data-reactid = "26">PepsiCo (DYNAMISM) published roughly identical fourth quarter results with the expectations of analysts. The food and beverage giant posted adjusted earnings per share of $ 1.49 for sales of $ 19.52 billion. However, the company – just like the Coca-Cola Beverage Company (KO), which released a report Thursday – has presented mediocre prospects for 2019. PepsiCo said it hoped to earn $ 5.50 per share in 2019, less than its EPS of $ 5.66 for 2018 and the results of Wall Street. 2019 outlook of $ 5.85 per share, according to Bloomberg data. In the fourth quarter, the company's North America Beverages unit, which accounts for approximately one-third of sales, reported a 12% decline in operating income, which the company believes is due to some increases in operating costs, including increased product costs and advertising and marketing expenses. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Deere & amp; Business (OF) did not meet Wall Street's expectations first-quarter earnings of $ 1.54 per adjusted share, 11 cents below consensus estimates. Bloomberg data generated quarterly sales of $ 6.94 billion, up 16% from last year. In a statement, Deere's CEO, Samuel Allen, cited the pricing and business concerns as one of the main reasons for the low earnings, saying the company's results were "affected by rising costs of raw materials and logistics as well as by the concerns of customers regarding pricing and commercial policies. "However, he added that he thought that cost pressures" should be mitigated as the 39, year ahead ", and the company hopes more clarity on trade issues. Deere, an agricultural machinery manufacturer, estimates that equipment sales are expected to increase by approximately 7% in 2019 compared to 2018, adding 1% to its net sales forecast for 2019. "data- reactid = "27">Deere & Company (OF) did not meet Wall Street's expectations first-quarter earnings of $ 1.54 per adjusted share, 11 cents below consensus estimates. Bloomberg data generated quarterly sales of $ 6.94 billion, up 16% from last year. In a statement, Deere's CEO, Samuel Allen, cited the pricing and business concerns as one of the main reasons for the low earnings, saying the company's results were "affected by rising costs of raw materials and logistics as well as by the concerns of customers regarding pricing and commercial policies. "However, he added that he thought that cost pressures" should be mitigated as the 39, year ahead ", and the company hopes more clarity on trade issues. Deere, an agricultural equipment manufacturer, estimates equipment sales are expected to increase by approximately 7% in 2019 compared to 2018, adding 1% to its 2019 net sales guidance.

ECONOMY: Industrial production dropped unexpectedly in January

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Industrial production fell 0.6% in January, after falling 0.1% increase in December, according to a & nbsp;Federal Reserve Statement Friday. Consensus estimates predicted a 0.1% increase in industrial production for the month. Manufacturing output also fell unexpectedly, down 0.9% for the month from a flat figure forecast. The decline in manufacturing output is attributable to the 8.8% drop in auto production – excluding motor vehicles and their parts, production was down only 0.2%. "Data-reactid =" 33 ">Industrial production fell 0.6% in January, after falling 0.1% increase in December, according to a statement from the Federal Reserve on Friday. Consensus estimates predicted a 0.1% increase in industrial production for the month. Manufacturing output also fell unexpectedly, down 0.9% for the month compared with expectations of an unchanged figure. The decline in manufacturing output is attributable to the 8.8% drop in auto production – excluding motor vehicles and parts, production was down only 0.2%.

"The manufacturing sector is under the real pressure of the slowdown in China and the trade war, and we expect a decline in production in the first half of the year, which would put the sector into a mild recession," Ian said. Shepherson, chief economist at Pantheon Macroeconomics. in an email on Friday's results. "This is not going to kill the rest of the economy, but it's not going to look good either, and until the sector collapses, in late spring, the recent round The second half of the year will probably be another story, but it's a little different. "

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Manufacturing activity in New York, however, rebounded in February, according to the latest Empire State Manufacturing survey at the Federal Reserve Bank of New York. The total index advanced by about 5 points to 8.8 in February, exceeding consensus expectations by a reading of 7. Orders rose 4 points to 7.5, while the number index rose by fell back for a second month in a row. The survey also revealed that companies were more optimistic than last month about the outlook for the next six months. "Data-reactid =" 35 ">Manufacturing activity in New York, however, rebounded in February, according to the latest Empire State Manufacturing survey at the Federal Reserve Bank of New York. The total index advanced by about 5 points to 8.8 in February, exceeding consensus expectations by a reading of 7. Orders rose 4 points to 7.5, while the number index rose by fell back for a second month in a row. The survey also showed that companies were more optimistic about the outlook for the next six months than last month.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Import prices in the United States fell 0.5% in January, falling more than Decline of 0.2% expected by consensus. the Bureau of Labor Statistics& nbsp; noted that fuel and other product prices contributed to the January decline, which was the third consecutive month of lower import prices. US export prices, for their part, fell 0.6% for the second consecutive month of decline. Consensus estimates were for a 0.1% drop in export prices. "Data-reactid =" 36 ">Import prices in the United States fell 0.5% in January, falling more than Decline of 0.2% expected by consensus. The Bureau of Labor Statistics noted that fuel and other commodity prices contributed to the January decline, which was the third consecutive month of lower import prices. US export prices, for their part, fell 0.6% for the second consecutive month of decline. Consensus estimates were for a 0.1% drop in export prices.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The preliminary consumer sentiment of the University of Michigan reading& nbsp; for February, at 95.5, an improvement from the last January record of 91.2. The better than expected results for early February illustrate the end of the partial closure of the government, as well as a "more fundamental shift in consumer expectations due to the Fed's pause in rising interest rates." "said Richard Curtin, Chief Economist of Surveys of Consumers. in a statement. "data-reactid =" 37 ">The preliminary consumer sentiment of the University of Michigan The reading in February was 95.5, an improvement over the final reading of 91.2 in January. The better than expected results for early February illustrate the end of the partial closure of the government, as well as a "more fundamental shift in consumer expectations due to the Fed's pause in rising interest rates." "said Richard Curtin, Chief Economist of Surveys of Consumers. in a report.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck"data-reactid =" 39 ">Emily McCormick is a journalist for Yahoo Finance. Follow her on Twitter: @emily_mcck

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