US equity benchmarks increased on Friday, as positive economic indicators from the largest economy in the world boosted investors’ confidence.
The Dow Jones Industrial Average was up 0.8% at the time this article was written, and the S&P 500 Index rose by 0.3%. Nasdaq composite, which is dominated by tech companies, rose just 0.1%.
This week, all benchmarks showed a weekly increase of more than 1%.
The major averages have fallen this week after the post-election rally.
CNBC reported that Friday’s Wall Street moves were part of an ongoing trend in which investors have shifted their exposure from the major tech companies to more economically sensitive sectors of the market.
The tech stocks suffered on Friday, with NVIDIA and Alphabet both slipping in the session.
Bitcoin is now close to the $100,000 milestone, and the Russell 2000 has risen 1%. The Russel 2000 was expected to finish the week up by more than 4%.
Sam Stovall is the chief investment strategist of CFRA Research and spoke to CNBC.
Investors have shifted away from the high-flying large-cap companies in communication and technology to other sectors such as consumer discretionary and industrials. They are also investing more into mid- and smaller-caps.
The purchasing managers’ index rose in November
The manufacturing sector and the services sector in the US both grew in November.
The reading of the flash PMI for services has risen to 57.0. This is a 2 point increase since October, and it’s also the highest in 32 months.
The manufacturing index increased to 48.8, a slight increase from October, and its highest level since four months.
While the manufacturing index met Dow Jones’ estimate, the service index slightly exceeded the forecast of 55.0.
Indexes are based on the number of companies that report growth. Anything above 50 is considered expansion.
Gap and Ross Retail Stocks Gain
After posting positive results, both Gap and Ross retail stocks saw their shares rise on Friday.
Gap shares rose by 15% following the company’s top- and bottom-line results. Gap also increased its sales forecast for the full year.
Shares of Ross rose 7% in the meantime after it reported adjusted earnings of $1.48 per share. Analysts at LSEG predicted earnings per share of $1.40.
Alphabet, NVIDIA drops
Alphabet shares fell nearly 2% Friday. This is a continuation of the steep declines seen on Thursday.
The shares dropped after the Department of Justice told a judge the company monopolized online searches.
Shares of NVIDIA Corporation fell more than 3% as well on Friday, with investors unimpressed by the company’s forecasts for revenue.
Nasdaq, which is dominated by technology companies, was impacted by the decline in both major shares of the US.
Intuit, the parent company of TurboTax, lost 4,7% on Friday after it announced that its second-quarter revenues and profits were below Wall Street expectations.
The post Dow Jones and S&P 500 Rise on Strong US Manufacturing Data; Gap Jumps 15% while Alphabet & NVIDIA Slide may be updated as new developments unfold.
