S&P hits new record highs as Investing.com tech hits lows
By Yasin Ebrahim
Investing.com – The S&P 500 hit a new record high on Friday as technology stocks moved from session lows and financials rose on better-than-expected gains from Wall Street banks.
The increase rose by 0.41% to a record high during the day of 4,187.91, the increase by 0.53% or 181 points and reached a record value of 34,256.75. that was up 0.1%.
Morgan Stanley (NYSE :), Bank of New York Mellon (NYSE 🙂 and PNC Financial Services (NYSE 🙂 reported results for the first quarter that beat estimates in the income statement, but the latter made the praise come for more rose as 2%.
Other regional banks were also higher, with US Bancorp (NYSE 🙂 leading the indictment, up 3% as better-than-expected quarterly results released Thursday sparked optimism on Wall Street.
US Bancorp has begun “seeing a rebound in its fee-paying businesses along with the improved credit picture, which should reassure investors that the company will weather this downturn better than almost any of its peers and maintain its group premium rating”. RBC said.
Financials came under pressure on falling yields last session, and analysts warned that any further deterioration in interest rates would likely continue to weigh on cyclicals.
“The bottom line is: if the TNX (10-year Treasury yields) pushes further down in the short term, these are themes / strategies [small-caps, value, and financials] will continue to underperform (in the short term), “said Janney.
Materials were boosted by a 10% increase in PPG Industries (NYSE 🙂 following better-than-expected first quarter results and bullish second quarter forecasts released Thursday.
Sentiment on cyclicals was also bolstered by further signs of a bullish consumer following Thursday’s retail sales data.
The University of Michigan announced on Friday that its preliminary index rose to 86.5 in the first half of this month from 84.9 in March, its highest level in a year.
Meanwhile, energy slumped as oil prices lost gains after China posted record GDP growth in the first quarter, despite optimism about the global recovery.
Marathon oil (NYSE :), EOG Resources (NYSE 🙂 and Nov (NYSE 🙂 were some of the biggest declines.
Big Tech, meanwhile, moved out of session lows, with Fab 5 trading mixed, although US bond yields diverged from session highs.
Google parent alphabet (NASDAQ :), Facebook (NASDAQ :), and Apple (NASDAQ 🙂 were lower, while Amazon.com (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 were above the flatline.
The industry was dragged down by a decline in Boeing (NYSE 🙂 after inspectors reportedly found more electrical issues with the 737 Max that resembled those that resulted in jets being banned from service last week, Reuters said, citing on industry sources.
In other news, Splunk (NASDAQ 🙂 fell more than 9% after KeyBanc downgraded the stock from overweight to sector weight following the resignation of Chief Technology Officer Tim Tully.
The resignation comes at a “difficult time” for the company as it moves to a subscription model this year, KeyBanc said.