Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, attributed Friday’s gains to strong US manufacturing data as well as the improving mood on trade. He said investors were cautious about the apparent trade progress, however.
“President Trump saying it’s close is news we’ve heard before. How close is close? Close but not quite or close but I could change my mind?” he said. “That’s what’s keeping the market on its heels at the moment, keeping the move a little bit more timid.”
Manufacturing output accelerated in November to its fastest pace in seven months and services activity picked up more than expected.
The Dow Jones Industrial Average rose 109.33 points, or 0.39 per cent, to 27,875.62, the S&P 500 gained 6.75 points, or 0.22 per cent, to 3,110.29 and the Nasdaq Composite added 13.67 points, or 0.16 per cent, to 8,519.89.
Still, the S&P snapped its six-week winning streak, while the tech-heavy Nasdaq registered its first weekly drop in eight weeks and the Dow showed a weekly loss after four weeks of gains. A largely better-than-expected third-quarter corporate earnings season contributed to recent rallies.
Seven of the 11 major S&P 500 sectors closed higher, led by a 0.76 per cent gain in financials and a 0.65 per cent rise in consumer discretionary.
Nordstrom rose 10.6 per cent after the retailer raised its 2019 forecast and reported third-quarter profit above expectations. Gap shares rose 4.4 per cent as the retailer beat lowered quarterly profit estimates days after it cut its annual forecast and replaced its longtime chief executive officer.
Shares of Tesla fell 6 per cent as Wall Street questioned the look of its newly unveiled electric pickup truck, whose “armoured glass” windows shattered in a demonstration.
Intuit dropped 4.2 per cent after the income-tax filing software maker forecast second-quarter profit below estimates.
Advancing issues outnumbered declining ones on the NYSE by a 1.50-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favored advancers.
The S&P 500 posted 17 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 60 new highs and 84 new lows.
On US exchanges, 5.96 billion shares changed hands compared with the 7.03 billion average for the last 20 sessions.