Benzinga - by Piero Cingari, Benzinga Staff Writer.
The U.S. stock market, as gauged by the S&P 500 index, is on track to record its fourth consecutive week of gains, marking its 13th positive week out of the last 14.
The broad gains seen across major U.S. stock averages on Friday have been fueled by major tech earnings surpassing expectations and a labor market showing more strength than predicted in January, maintaining high expectations for robust consumer spending in the near future.
The S&P 500 was up 0.8% reaching fresh record highs as of midday trading in New York.
Meta Platforms Inc. (NASDAQ:META) skyrocketed over 22% following an impressive earnings report and optimistic guidance for 2024. Amazon.com Inc. (NASDAQ:AMZN) soared more than 8% after reporting a 14% jump in revenue and record-breaking profits.
Collectively, the market value of the Magnificent Seven has hit $12.9 trillion, surpassing the combined worth of economies such as Germany, Japan, and India.
The January jobs report showcased remarkable job growth, with payrolls increasing by 353,000—nearly twice the anticipated 180,000. Additionally, wages rose more than expected, challenging the forecasts for interest rate cuts.
Traders now believe a March cut is off the table, and they are also reducing their expectations for a cut in May. As a result, the total number of rate cuts anticipated for 2024 has decreased from six to five.
Bonds took a hit, as yields rose substantially across the curve. The popular iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) tanked 2.5%.
Friday's Performance In Major Indices, ETFs
IndexPriceChange (%)| Nasdaq 100 | 17,634.97 | +1.7% |
| S&P 500 | 4,954.20 | +1.0% |
| Dow Jones | 38,589.48 | +0.2% |
| Russell 2000 | 193.54 | -1.0% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.9% higher to $493.69, the SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.2% to $385.86 and the tech-heavy Invesco QQQ Trust (NASDAQ:QQQ) rose 1.7% to $429.18, according to Benzinga Pro data.
Sector-wise, the Communication Service SPDR Select Sector Fund (NYSE:XLC) rallied, up 3.8%, followed by the Consumer Discretionary SPDR Select Sector Fund (NYSE:XLY) up 1.5%.
Sector laggards were the Real Estate SPDR Select Sector Fund (NYSE:XLRE), down 1.9%, and the Utilities SPDR Select Sector Fund (NYSE:XLU), down 2%.
Friday’s Stock Movers
- Deckers Outdoor Corporation (NYSE:DECK) rose 16% after reporting better-than-expected results.
- Charter Communications, Inc. (NASDAQ:CHTR) fell over 15% after missing earnings.
- Other companies reacting to earnings Saia, Inc. (NASDAQ:SAIA), up 12%, The Cigna Group (NYSE:CI), up 5.6%, Gen Digital Inc. (NASDAQ:GEN), down 13%, Royal Caribbean Cruises Ltd. (NYSE:RCL), down 4%, Clorox Company (NYSE:CLX), up 5.5%.
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