NEW YORK, NEW YORK – JANUARY 22: Traders work on the floor of the New York Stock Exchange during afternoon trading on January 22, 2024 in New York City. The Dow Jones and S&P hit all-time highs with the Dow Jones closing above 38,000 for the first time as stocks continue to climb. (Photo by Michael M. Santiago/Getty Images)
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The S&P 500 closed slightly lower on Friday but posted weekly gains as the latest economic data added to a positive picture of the economy.
The broad market index fell 0.07% to 4,890.97 points. The Nasdaq Composite slipped 0.36% to 15,455.36, affected by a post-earnings slide Intel. The Dow Jones Industrial Average broke the trend by adding 60.30 points, or 0.16%, to 38,109.43, an all-time high close. All three major averages are now up more than 100% from their pandemic lows.
Despite Friday’s mixed session, the major averages recorded a winning week. The S&P 500 rose about 1.1%, while the tech-heavy Nasdaq Composite climbed about 0.9%. The blue-chip Dow gained about 0.7%.
Friday’s losses ended a six-day losing streak for the S&P 500 and Nasdaq. By the end of Thursday’s session, the benchmark S&P 500 had closed at a record high for five consecutive trading days, the longest such streak since November 2021.
Stocks were boosted this week by encouraging economic data.
December’s core personal consumption expenditure price index was in line with economists’ forecasts month over month, but was slightly lower than expected on a year-over-year basis, data released on Friday showed. It is a preferred inflation indicator for the Federal Reserve, which sets monetary policy.
Friday’s PCE print came a day after gross domestic product data revealed stronger-than-expected economic growth in the fourth quarter. That boosted investors’ hopes that the economy has avoided a deep recession.
“All the economic data – both GDP and PCE – was good this week,” said Rhys Williams, chief strategist at Spouting Rock Asset Management. “That was comforting for everybody. And I think it shows that we’re still in that potential ‘Goldilocks’ landing, where the economy softens a little bit but is still positive.”
But selling among some well-known stocks on the back of earnings reports limited gains this week.
Chipmaker Intel fell nearly 12% on Friday after delivering a disappointing first-quarter fiscal outlook. UCK fell more than 6% in the session after the semiconductor company posted light guidance for its fiscal third quarter.
Secondly, American Express rallied more than 7% after sharing a better-than-expected full-year earnings forecast. That helped the 30-stock Dow pare losses from Intel’s decline.
Somewhere else, Tesla, a retail investor favorite, recorded its worst week since October, falling 13.6% in the period. Shares fell after the electric vehicle maker posted disappointing earnings and warned of problems in 2024.