Dow Closes at Record High as Traders Parse Macro Data

MT Newswires Live05:30

The Dow Jones Industrial Average closed at an all-time high Friday as traders analyzed the latest economic data.

The Dow jumped 1% to 44,296.5, while the S&P 500 rose 0.4% to 5,969.3. The Nasdaq Composite added 0.2% to 19,003.7. Industrials saw the biggest gain among sectors, while communication services, utilities, and technology closed lower.

For the week, the Dow increased almost 2%, while the S&P 500 and the Nasdaq grew 1.7% each.

In economic news, US private sector output rose to the highest level since April 2022 despite continued contraction in manufacturing, while the year-ahead outlook hit a 2.5-year high, according to S&P Global's (SPGI) flash purchasing managers' index.

"The survey's price gauge covering goods and services signaled only a marginal increase in prices in November, pointing to consumer inflation running well below the (Federal Reserve's) 2% target," S&P Global Market Intelligence Chief Business Economist Chris Williamson said.

US consumer sentiment continued to grow in November, while year-ahead inflation expectations dropped to the lowest since December 2020, final results from the University of Michigan's Surveys of Consumers showed.

"Substantial" uncertainty remains over the implementation of President-elect Donald Trump's economic agenda, Surveys of Consumers Director Joanne Hsu said.

The US two-year yield rose three basis points to 4.38% Friday, while the 10-year rate dropped 1.6 basis points to 4.42%.

In company news, Copart (CPRT) shares jumped 10%, the second-best performer on the S&P 500 and the Nasdaq, after the company late Thursday posted fiscal Q1 results that grew year over year.

Boeing (BA) was the top gainer on the Dow Friday, up 4.1%. The plane maker said Thursday it won a contract valued at $2.38 billion to build an additional 15 units of KC-46A Pegasus tankers for the US Air Force.

Intuit (INTU) saw the steepest decline on the S&P 500 and the Nasdaq, down 5.7%. Late Thursday, the financial technology platform issued a downbeat fiscal Q2 revenue outlook.

Palo Alto Networks (PANW) shares decreased 3.6%, the second-worst performer on the S&P 500 and among the worst on the Nasdaq, as HSBC downgraded the cybersecurity firm to reduce from hold and adjusted its price target to $291 from $304.

West Texas Intermediate crude oil increased 1.5% to $71.17 a barrel Friday.

Crude futures were headed for a weekly gain amid elevated tensions between Russia and Ukraine, Saxo Bank said in a report. There are also doubts about the Organization of the Petroleum Exporting Countries and its allies unwinding voluntary production cuts next year due to market oversupply, according to the report.

Gold rose 1.3% to $2,708.80 per troy ounce, while silver gained 1.1% to $31.30 per ounce.

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