Major US stock indices closed on a modestly high note on Friday, led by a surge in Nike Inc shares, but they all posted weekly losses.
The S&P 500 scored its biggest gain for the first half of the year since 2013 while the NASDAQ Composite’s first-half gain was its best in eight years.
Nike shares rose 11 percent on Friday after the world’s largest footwear maker said it would launch a pilot online sales program with Amazon.com Inc. Nike shares gave the biggest boost to the Dow industrials and the S&P 500.
Even as technology shares limped through last month, the sector has been the big story of the first six months of the year. Tech shares gained 16.4 percent in the first half, double the S&P 500’s 8.2 percent rally so far this year.
The tech-heavy NASDAQ surged 14.1 percent in the first half.
The S&P technology index ended down 0.1 percent on Friday, while for all of last month it posted its first monthly loss of the year.
A decline in biotech shares, which had surged of late, also limited the NASDAQ.
“Are we going to see a broadening of the rally, where you see more of the financials and other sectors fill in some of the gaps?” said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm in Toledo, Ohio.
“It hasn’t been a broad encompassing rally, that I think investors will have to see a little bit more conviction rather than just in a handful of stocks,” Lancz said.
The Dow Jones Industrial Average on Friday rose 62.6 points, or 0.29 percent, to 21,349.63, the S&P 500 gained 3.71 points, or 0.15 percent, to 2,423.41, and the NASDAQ Composite dropped 3.93 points, or 0.06 percent, to 6,140.42. Industrials were the top-performing sector, rising 0.8 percent.
For the week, the Dow slipped 0.1 percent, the S&P 500 fell 0.6 percent and the NASDAQ dropped 1.9 percent.
“When you look at some of the stocks that are doing particularly well today [Friday], they are some of those economically sensitive-type stocks,” said Chuck Carlson, chief executive officer at Horizon Investment Services LLC in Hammond, Indiana.
“During a time when it seems like there are still a fair amount of naysayers out there about the economy and GDP, anytime you get some of those stocks showing some strength, it probably emboldens the market,” Carlson said.
The S&P 500’s percentage gain in the first half was its biggest since climbing 12.6 percent in the first six months of 2013. The NASDAQ posted its biggest first-half gain since 2009.
US consumer spending rose modestly in May and inflation cooled, pointing to a slow, but steady economic expansion.
US Department of Commerce data bolstered the view that the economy is rebounding in the second quarter.
Investors have been concerned about mixed economic data at a time that the US Federal Reserve begins lifting interest rates from very low levels.
The release of second-quarter corporate results is set to begin in earnest in the coming weeks, with S&P 500 companies expected to post an 8 percent rise in earnings, according to Thomson Reuters I/B/E/S.
Investors have been looking for earnings to support historically high valuations. The S&P 500 has been trading at about 18 times earnings estimates for the next 12 months compared with the long-term average of 15 times.
“We can talk about the economy and geopolitical risk, but earnings drive the market,” said Chris Bertelsen, chief investment officer of Aviance Capital Management LLC in Sarasota, Florida. “We’re bumping right along the top end of” historic valuation levels.
About 6.6 billion shares changed hands in US exchanges on Friday, below the 7.3 billion daily average over the past 20 sessions.
Advancing issues outnumbered declining ones on the New York Stock Exchange by a 1.60-to-1 ratio; on NASDAQ, a 1.01-to-1 ratio favored decliners.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion