Wall Street settled higher on Friday, with the Nasdaq outperforming the broader market as megacap tech companies lead large rallies following better-than-expected quarterly earnings. Yet, gains well stunted from more negative consumer confidence and personal income data, outlining the long road ahead for economic recovery. Nevertheless, all major benchmarks ended July with performance gains, with the Nasdaq leading at 6.5%, the S&P 500 gaining over 5.5% and the Dow climbing roughly 2%.
The Bureau of Economic Analysis released personal income data on Friday, showing a more-than-expected 1.1% drop for June, which furthered May's plunged of 4.4%. The agency noted that the decrease in personal income came as an effect of the coronavirus pandemic as well as federal stimulus income by unemployment insurance benefits.
University of Michigan's Survey's of Consumers also sank in July, with the final reading declining to 72.5. The reading has fallen from June's 78.1 and pre-pandemic levels of 130.
"While the 3rd quarter GDP is likely to improve over the record setting 2nd quarter plunge, it is unlikely that consumers will conclude that the recession is anywhere near over," Surveys of Consumers Chief Economist Richard Curtin said in a statement. "The federal relief programs have prevented more substantial declines in consumer finances, partially shielding consumers from the unprecedented surge in job losses, reduced work hours, and salary cuts."
"The lapse of the special jobless benefits will directly hurt the most vulnerable and spread even further by missed rent, mortgage, and other debt payments," Curtin added, speaking on Congress not extending further unemployment assistance that expires Friday. "Easing off the added jobless benefit will naturally result with job growth as well as provide for a delayed and gradual reduction in added benefits so that its eventual absence is much less disruptive."
Here's how the market closed out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
For Major Stock News, tech giants posted a strong quarterly results after market close on Thursday, pushing most of their stocks higher throughout Friday's session. Apple
For Sector Performance, industries ended the session split between gains and losses. The half the gained during Friday's session: Information Technology +2.50%, Consumer Discretionary +1.28%, Communication Services +0.77%, Utilities +0.20%, Materials +0.11% and Financials +0.01%. The other half that closed with losses: Energy -0.69%, Health care -0.55%, Industrials -0.40%, real Estate -0.16% and Consumer Staples -0.14%.
For Commodities and Currency, crude oil prices rose on Friday, settling higher for the month due in part to U.S. oil output cuts being the largest on record in May. West Texas Intermediate
As the market heads into Monday, participants will focus on manufacturing data as well as quarterly earnings from pandemic-friendly Clorox