Pedestrians pass the New York Stock Exchange, Wednesday, Jan. 27, 2021, in New York. Stocks are inching higher in early trading on Wall Street Friday, Aug. 20, but not enough to erase their losses from the week. (AP Photo/John Minchillo, File)
By Alex Veiga
Technology companies led stocks broadly higher on Wall Street Friday, though the gains were not enough to erase the market's losses from earlier in the week.
The S&P 500 index rose 0.8%, but still posted a weekly loss of 0.6% after two weeks of gains. Even so, the benchmark index is less than 1% from the all-time high it set Monday.
More than 80% of S&P 500 companies notched gains, including tech sector stocks. Microsoft rose 2.6% and chipmaker Nvidia gained 5.1% for the biggest gain in the index. A mix of companies that rely on consumer spending and communications stocks also made up a big share of the rally. Energy stocks also rose, despite another decline in the price of U.S. crude oil. Treasury yields mostly rose.
Investors turned cautious this week following some disappointing economic reports on retail sales, housing and consumer sentiment. Escalating coronavirus infections across the U.S. and around the globe due to the highly contagious delta variant have also given traders reason to pause with the market near all-time highs.
“Today was the first day that the market didn’t have to deal with disappointing economic data,” said Willie Delwiche, investment strategist at All Star Charts. “We also need to remember it's a Friday in August, not typically an environment where we look for big signals out of the market.”
The S&P 500 rose 35.87 points to 4,441.67. The Dow Jones Industrial Average added 225.96 points, or 0.7%, to 35,120.08. The Nasdaq composite picked up 172.87 points, or 1.2%, to 14,714.66. The Dow and Nasdaq also posted weekly losses.
Small company stocks recovered some of their losses from earlier in the week. The Russell 2000 index added 35.18 points, or 1.7%, to 2,167.60. The index still finished with a 2.5% weekly drop.
Bond trading was quiet. The yield on the 10-year Treasury note rose to 1.26% from 1.24% late Thursday.
With earnings season winding down, investors got to see quarterly report cards from mostly retailers this week. On Friday, Ross Stores fell 2.7%, the biggest decline among S&P 500 companies, after issuing a full-year forecast that fell short of Wall Street’s expectations. Foot Locker jumped 7.3% after blowing past analysts’ forecasts for its latest quarter.
Fund managers aren’t expecting much volatility this month as investors will have little data to work with. August also tends to be a popular time for investors to take vacations, so trading volume typically declines. September tends to be a much more volatile month once Wall Street is back to work.
Still, next week could provide Wall Street with more insight on what the Federal Reserve may do about inflation. Earlier this week, minutes from the most recent Fed meeting showed that officials had discussed reducing the central bank's bond-buying program later this year to start winding down some of the emergency measures that were implemented during the pandemic. But they stopped short of setting a firm timeline.
The Fed's annual conference in Jackson Hole, Wyoming next week could offer hints on when such tapering may begin.
“From a historical perspective, the Fed doesn't make news in its minutes, but it does tend to set out policy shifts at its symposium,” Delwiche said.
Officials and power operators are bracing the public for blackouts caused by higher-than-average temperatures this summer. Utility officials in California and Arizona are warning of potential interruptions this summer due to the strain on energy supplies. Heat waves and drought conditions weaken power grids and available electricity reserves. This also makes hydroelectric power less reliable and raises the risk of wildfires.
Cisco DeVries, CEO of OhmConnect, joins Cheddar News to discuss.
The markets opened lower on Thursday as investors hold their breath ahead of the May consumer price index, which will give investors a better picture of the state of inflation in the United States. Michele Schneider, a partner and the director of trading research and education for MarketGauge.com, joined Cheddar to discuss. "If the CPI read is softer than what's expected, we actually might get a rally," she said. "If it's more than expected, then I think it will spook the market."
With real estate being a largely male-dominated industry, Stephanie Shojaee, vice president and chief marketing officer at development company Shoma Group, joined Cheddar News to discuss how she took on the gender gap for women to achieve leadership roles, starting at her own company. “It's been very important to teach all the women that work here, especially the younger ones, that they shouldn't change themselves," she said. "You need to be happy with who you are and just keep breaking barriers."
We are already starting to feel the effects of summer. Heat waves in Texas and California are already sending temperatures soaring. That could spell trouble for the nation's power supply. there are new concerns about outages in many areas of the country. Cheddar's Shannon Lanier explains the two main causes of blackouts, and what states are doing to keep the lights on and the air conditioning running.
Pinterest is making a big move as it pushes further into online shopping. The image-focused social media site is acquiring A.I.-powered shopping platform THE YES as it focuses on enhancing the user shopping experience. THE YES's technology gives users a personalized feed of products based on their preferences, and Pinterest is banking on the tech to give it an advantage among other social media apps with built-in shopping features. Julie Bornstein, founder and CEO of THE YES, joins Closing Bell to discuss the company's unique technology, why it agreed to sell to Pinterest, her vision as she takes over shopping initiatives, and more.
Keith Barr, CEO of InterContinental Hotel Group, says he is expecting an 'incredible' summer for his business as pandemic conditions have normalized and people are ready to travel.
Dann Ryan, Chief Investment Officer at Sincerus Advisory, discusses what drove markets lower on Wednesday, as well as what investors are anticipating when it comes to the upcoming CPI report and Fed decision.
U.S. stocks close Tuesday at session highs after a subpar start to the trading day. Tim Chubb, Chief Investment Officer at the wealth advisory firm, Girard, joins Cheddar News' Closing Bell to discuss. 'We're starting to see the moderation of three core things -- we've seen the moderation of prices, we've seen the moderation of wage growth we've seen in the labor market, and we've also seen a moderation of job openings,' he says.
The victims from the USA gymnastics sexual abuse scandal continue to seek justice. Survivors of Larry Nassar are seeking more than one-billion dollars from the FBI for failing to stop the convicted sports doctor when the agency first received allegations. According to a report released by the Justice Department's Inspector General, FBI agents knew
in July of 2015 that Nassar was accused of abusing gymnasts; however, Nassar wasn't arrested until December of 2016. The group that filed the claim includes Olympic medalist Simone Biles and around 90 other women. Louise Radnofsky, sports reporter at The Wall Street Journal, joins Cheddar News' Closing Bell to discuss.
