Pedestrians pass the New York Stock Exchange, Wednesday, Jan. 27, 2021, in New York. Stocks remained mixed in early trading on Friday, Feb. 12, following the highs the market set the day before. (AP Photo/John Minchillo, File)
By Ken Sweet, Damian J. Troise, and Alex Veiga
Stocks are closing higher Friday after a late surge by technology stocks led the S&P 500 to a new high. The wobbly week of trading ended with the Dow Jones Industrial Average and Nasdaq at record highs also. Investors focused on trillions of dollars of potential government aid that could be coming for the economy, as Democrats advance their stimulus package. Companies reported solid earnings, including manufacturer Mohawk Industries and genetic testing company Illumina. Bond yields rose, giving banks a boost. Bumble shares continued to climb after the company’s IPO the day before.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Major U.S. stock indexes wavered between small gains and losses Friday, as the market closed in on its second straight weekly gain after a wobbly week of trading.
Wall Street remains focused on trillions of dollars of potential government aid that could be coming for the economy, as Democrats move forward with their stimulus package.
The S&P 500 index was down less than 0.1% as of 2:13 p.m. Eastern. The Dow Jones Industrial Average slipped 57 points, or 0.2%, to 31,373. The Nasdaq composite inched up less than 0.1%. The Russell 2000 index of small companies was also up less than 0.1%. The major indexes remain near the all-time highs each set earlier this week.
The muted moves follow several days of minor gains and losses for the broader market, but every major index is still on track for a weekly gain ahead of a long weekend. U.S. stock and bond markets are closed Monday for Washington’s Birthday.
Investors are hoping for a new round of U.S. government aid as the economic recovery falters. The latest U.S. government report on jobless claims reaffirmed that employment remains a weak spot in the economy, even as vaccine distribution ramps up in the hopes of eventually ending the pandemic. The University of Michigan survey of consumer sentiment came in well below expectations as well, a sign that consumers are wary to spend in the face of economic uncertainty.
Investors do not expect the market to move substantially higher in the near term until there's more clarity on the future of government stimulus and the direction of the U.S. economy. Democrats have decided to use a legislative process that does not require Republican support to pass the $1.9 trillion package.
“We’re sort of awaiting catalysts,” said Jeffrey Kleintop, chief global investment strategist at Charles Schwab. “The market is still of the opinion that there will be a vaccine-led, broad economic recovery in the second half of this year.”
A majority of companies have now reported their latest round of earnings and the results have been surprisingly good. Roughly 75% of companies in the S&P 500 have released results, showing overall growth of 2.8%, according to FactSet. That's a sharp reversal from the 13% contraction analysts had forecast in late September.
Mohawk Industries shares climbed 5.5% after the company posted stronger-than-expected quarterly earnings. Genetic analytics company Illumina jumped 13.3% for one of the biggest gains in the S&P 500 following its encouraging earnings report.
Bumble shares rose a further 13.5%, extending big first-day gains Thursday on the company's initial public offering.
Banks made some of the strongest gains as bond yields rose, which allow them to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 1.20% from 1.16% late Thursday. Wells Fargo gained 2.1%.
Most Asian markets were closed to mark the Lunar New Year and European markets closed higher.
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
