© Reuters. FILE PHOTO: A street sign for Wall Street is seen in front of the New York Stock Exchange (NYSE) in New York City, New York, the United States, July 19, 2021. REUTERS / Andrew Kelly
By Stephen Culp
NEW YORK (Reuters) – Wall Street gained ground for the fourth straight year on Friday, continuing a rally that pushed all three major U.S. stock indices to record highs as bullish gains and signs of economic recovery fueled investor risk appetite.
The Der, Nasdaq and Dow all posted weekly gains.
“We’re seeing a continuation of the past few days. It’s a roller coaster ride in reverse. We made the descent first and have since climbed back to the top,” said Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance in Charlotte, North Carolina.
Growth and value stocks fluctuated for much of the week as market participants weighed the spikey infections of the COVID-19 delta variant against strong corporate results and signs of economic recovery.
“There is push and pull, there is clearly conflict in the market,” added Zaccarelli. “There is strong disagreement as to whether the future is bright or whether there are clouds on the horizon.”
Market participants now look to next week with the Federal Reserve’s two-day monetary policy meeting and a series of high-profile gains.
The Fed’s statement is being searched for clues regarding the timeframe for tightening its accommodative policies, despite Chairman Jerome Powell saying repeatedly that the economy still needs the full support of the central bank.
Unofficially, the S&P 500 rose 238.34 points, or 0.68%, to 35,061.69, the S&P 500 gained 44.33 points, or 1.02%, to 4,411.81, and the additional 152.39 points, or 1.04% 14,836.99.
The reporting season for the second quarter is in full swing, with 120 of the companies reporting in the S&P 500. According to Refinitiv, 88% of these have defeated the consensus.
“We see companies being beaten both up and down on average,” said Zaccarelli. “We’re seeing consumer resilience and that has been the story of the earning season so far.”
Analysts now expect aggregate earnings growth of 78.1% year over year for the S&P 500 for the April to June period, a sizeable increase from the 54% annual growth rate at the beginning of the quarter.
Shares of the chip manufacturer Intel Corp. (NASDAQ 🙂 fell after it was said late Thursday that it is still facing delivery bottlenecks and gave disappointing forecasts.
American Express Co (NYSE 🙂 rose after releasing second quarter results, which slightly exceeded expectations on a global rebound in consumer spending.
Social media companies Twitter Inc (NYSE 🙂 and Snap Inc (NYSE 🙂 advanced on their positive results.
These reports gave the shares of Facebook Inc (NASDAQ :), which are due to release the second quarter results next week.
Other high profile wins expected next week include Tesla (NASDAQ 🙂 Inc, Apple Inc (NASDAQ :), Alphabet (NASDAQ 🙂 Inc, Microsoft Corporation (NASDAQ 🙂 and Amazon.com (NASDAQ :).
Industry Lockheed Martin Corp (NYSE :), Boeing (NYSE 🙂 Co, Ford Motor (NYSE 🙂 Co, General Dynamics Corp (NYSE :), 3M Co Caterpillar Inc (NYSE :), Chevron Corp (NYSE 🙂 and Exxon Mobil Corp (NYSE :), along with a variety of healthcare, consumer goods, and others, are also on deck.