The markets closed out the week with record highs as investors navigated the busiest week of this earnings season. The Dow 30 closed higher by 81, the S&P 500 added 13, and the Nasdaq finished up 27. The S&P and the Nasdaq both set records today.
The main area of focus was GDP growth numbers, which came in much better than expected (3.2% vs. 2.5%). Last quarters report saw a downtick in GDP, yet the S&P 500 still saw a 0.3% gain on the day of the report. This time the report beat handily but investors were cautious as overall inventories saw an uptick, hinting that the consumer is slowing. Some analysts suggest the rise in individual incomes has yet to translate into more spending by the consumer, while others worry that consumer spending will slow. The last retail sales numbers would argue that the consumer is still spending away.
Sector News
Semiconductors were weak once again, this time thanks to disappointing guidance from Intel after reporting an earnings beat. For the year the semiconductors have enjoyed a rather strong rally, posting gains of about 40% at highs. Since the start of earnings season for the chip stocks, however, the sector has pulled back.
Oil sold off on the day after reports emerged that President Trump called OPEC and asked for them to take actions to slow the rising cost of oil. Oil has been one of the better-performing areas this year with gains of about 50% off the lows.
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