Retailers and consumer goods companies on Friday led US stock indices mostly higher in afternoon trading as the market recouped some of its modest losses from a day earlier.
Energy companies were the biggest laggard as the price of crude oil declined, while bond yields were hovering near their highest level in more than three years.
Investors were monitoring developments in Washington ahead of a possible federal government shutdown this weekend.
The S&P 500 on Friday rose 12.27 points, or 0.4 percent, to 2,810.30, rising 0.9 percent from a close of 2,786.24 on Jan. 12.
The Dow Jones Industrial Average on Friday rose 53.91 points, or 0.2 percent, to 26,071.72, an increase of 1 percent from 25,803.19 a week earlier.
The NASDAQ on Friday added 40.33 points, or 0.6 percent, to 7,336.38, up 1 percent from 7,261.06 on Jan. 12.
The Russell 2000 index of smaller-company stocks picked up 20.90 points, or 1.3 percent, to 1,597.63, rising 0.7 percent from 1,587.12 a week earlier.
The US House of Representatives on Thursday voted for a stopgap funding bill to keep agency doors open and federal workers at their jobs until the middle of next month, but US Senate Democrats and some Republicans blocked it on Friday.
A shutdown could hurt consumer spending and rattle markets, although it is unlikely to cause widespread economic damage, Credit Suisse economists said in a note on Thursday.
“We expect the market to move past it and not to be too caught off guard if that were to happen,” JP Morgan Private Bank global investment specialist Jeramey Lynch said, adding that any federal government shutdown would be brief and cause relatively little disruption, similar to past shutdowns.
Bond prices were little changed. The yield on the 10-year US Treasury held at 2.63 percent after briefly rising to its highest level since September 2014.
Investors bid up shares in retailers, cruise lines and other consumer-focused companies. Hanesbrands Inc led the pack, climbing US$1.09, or 5 percent, to US$23.09.
Tobacco companies, beverage makers and other consumer products stocks rose. Altria Group Inc gained US$0.86, or 1.2 percent, to US$70.89. Philip Morris International Inc picked up US$3.40, or 3.2 percent, to US$108.47.
Lowe’s Companies Inc rose 2.9 percent after the home improvement supply retailer named three new directors. The stock added US$2.90 to US$104.26.
Amazon.com Inc traded higher after the e-commerce giant said it would raise the price of its Prime membership monthly plan by nearly 20 percent. Starting on Friday, new monthly members would pay US$12.99 per month, up from US$10.99. The stock picked up US$8.26 to US$1,301.58.
International Business Machines Corp slumped 4.3 percent, despite a solid fourth-quarter report. The technology and consulting company was the biggest decliner in the Dow. The stock fell US$7.25 to US$161.87.
American Express Co fell 2.9 percent after the credit card issuer suspended its share buyback program for six months following a big one-time tax charge. The stock shed US$2.87 to US$96.99.
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
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily
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
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