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 big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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