November 8, 20243:57 PM PSTUpdated 35 min ago
Summary
Companies
Consumer sentiment rises in November
Major U.S. indexes notch weekly gains
China ADRs fall after stimulus measures disappoint
Indexes up: Dow 0.59%, S&P 500 0.38%, Nasdaq 0.09%
NEW YORK, Nov 8 (Reuters) - The S&P 500 briefly
surpassed the 6,000 mark and closed with its biggest weekly percentage gain in
a year, as Donald Trump's election victory and a possible Republican Party
sweep in Congress fueled expectations for favorable business policies.
Also supporting stocks this week was a widely expected interest
rate cut of 25 basis points by the Federal Reserve on Thursday.
The S&P 500 and the Dow Industrials (.DJI),
opens new tab registered their best weekly percentage jump since early
November 2023, while the Nasdaq (.IXIC),
opens new tab notched its best week in two months and second-best week
of 2024.
Investors were also monitoring for a likely "Red
Sweep" as Republicans were set to keep their narrow lead in the
House of Representatives after winning control of the Senate. That would make
it easier for Trump to enact his legislative plans.
Expectations for lower corporate taxes and deregulation
lifted the Nasdaq to record closing highs for three straight sessions. The
S&P secured its 50th record close of the year.
"It is a psychologically important number but with all
the developments this week, I don't think it's terribly important if we close
at 6,005 or if we close at 5,995. The market is way up this week," said
Mike Dickson, head of research and quantitative strategies at Horizon
Investments in Charlotte, North Carolina.
"There's been so many things, so much good news for the
market this week as evidenced by the prices. All of that far outweighs whether
or not we're on the right or left hand side of that 6,000 number when the close
happens."
"It is a psychologically important number but with all
the developments this week, I don't think it's terribly important if we close
at 6,005 or if we close at 5,995. The market is way up this week," said
Mike Dickson, head of research and quantitative strategies at Horizon
Investments in Charlotte, North Carolina.
"There's been so many things, so much good news for the
market this week as evidenced by the prices. All of that far outweighs whether
or not we're on the right or left hand side of that 6,000 number when the close
happens."
The Dow Jones Industrial Average (.DJI), opens
new tab rose 259.65 points, or 0.59%, to 43,988.99, the S&P
500 (.SPX),
opens new tab gained 22.44 points, or 0.38%, to 5,995.54 and the
Nasdaq Composite (.IXIC), opens new tab gained 17.32 points, or 0.09%,
to 19,286.78.
For the week, the S&P 500 gained 4.66%, the Nasdaq rose
5.74%, and the Dow climbed 4.61%.
The Dow rose above 44,000 for the first time, in part due to
a late boost from Salesforce (CRM.N),
opens new tab, which climbed 3.59% after Bloomberg reported the software
company will hire 1,000 employees to promote its artificial intelligence
Agentforce Tool.
The S&P 500 and Nasdaq secured their fourth straight
session of gains.
The Dow Jones Industrial Average (.DJI), opens
new tab rose 259.65 points, or 0.59%, to 43,988.99, the S&P
500 (.SPX),
opens new tab gained 22.44 points, or 0.38%, to 5,995.54 and the
Nasdaq Composite (.IXIC), opens new tab gained 17.32 points, or 0.09%,
to 19,286.78.
For the week, the S&P 500 gained 4.66%, the Nasdaq rose
5.74%, and the Dow climbed 4.61%.
The Dow rose above 44,000 for the first time, in part due to
a late boost from Salesforce (CRM.N),
opens new tab, which climbed 3.59% after Bloomberg reported the software
company will hire 1,000 employees to promote its artificial intelligence
Agentforce Tool.
The S&P 500 and Nasdaq secured their fourth straight
session of gains.
Rate-sensitive sectors such as real estate (.SPLRCR),
opens new tab and utilities (.SPLRCU),
opens new tab were the best performing of the 11 major S&P 500
groups as Treasury yields fell for a second straight session after a sharp jump
following the election.
But the benchmark 10-year U.S. Treasury note yield (.YS10YT=RR),
opens new tab remained near a four-month high, and markets have scaled
back expectations for the pace of Fed rate cuts in 2025 as concerns remain over
the incoming administration's proposed tariffs which are likely to rekindle
inflation.
The small cap Russell 2000 (.RUT), opens
new tab also advanced and was up 8.51% for the week, registering its
largest weekly percentage gain since April 2020, as domestically concentrated
stocks are seen as likely to benefit from easier regulations, lower taxes and
less exposure to import tariffs.
Rate-sensitive sectors such as real estate (.SPLRCR),
opens new tab and utilities (.SPLRCU),
opens new tab were the best performing of the 11 major S&P 500
groups as Treasury yields fell for a second straight session after a sharp jump
following the election.
But the benchmark 10-year U.S. Treasury note yield (.YS10YT=RR),
opens new tab remained near a four-month high, and markets have scaled
back expectations for the pace of Fed rate cuts in 2025 as concerns remain over
the incoming administration's proposed tariffs which are likely to rekindle
inflation.
The small cap Russell 2000 (.RUT), opens
new tab also advanced and was up 8.51% for the week, registering its
largest weekly percentage gain since April 2020, as domestically concentrated
stocks are seen as likely to benefit from easier regulations, lower taxes and
less exposure to import tariffs.
U.S. consumer sentiment rose to a seven-month high in early
November, with a measure of households' expectations for the future climbing to
the highest in more than three years, led by brightening outlooks among
Republicans, the University of Michigan's Consumer Sentiment Index showed.
Airbnb (ABNB.O),
opens new tab shares dropped 8.66% after the homestay company
missed third-quarter
profit estimates, while social media company Pinterest (PINS.N),
opens new tab tumbled 14% after a disappointing revenue forecast.
U.S.-listings of Chinese companies lost ground as the
government's latest fiscal
support measures once again failed to impress investors. JD.com fell
6.99% and Alibaba lost 5.94%.
Advancing issues outnumbered decliners by a 1.7-to-1 ratio
on the NYSE and by a 1.21-to-1 ratio on the Nasdaq.
The S&P 500 posted 88 new 52-week highs and 10 new lows
while the Nasdaq Composite recorded 211 new highs and 108 new lows.
Volume on U.S. exchanges was 15.46 billion shares, compared
with the 12.74 billion average for the full session over the last 20 trading
days.
Airbnb (ABNB.O),
opens new tab shares dropped 8.66% after the homestay company
missed third-quarter
profit estimates, while social media company Pinterest (PINS.N),
opens new tab tumbled 14% after a disappointing revenue forecast.
U.S.-listings of Chinese companies lost ground as the
government's latest fiscal
support measures once again failed to impress investors. JD.com fell
6.99% and Alibaba lost 5.94%.
Advancing issues outnumbered decliners by a 1.7-to-1 ratio
on the NYSE and by a 1.21-to-1 ratio on the Nasdaq.
The S&P 500 posted 88 new 52-week highs and 10 new lows
while the Nasdaq Composite recorded 211 new highs and 108 new lows.
Volume on U.S. exchanges was 15.46 billion shares, compared
with the 12.74 billion average for the full session over the last 20 trading
days.
Reporting by Chuck Mikolajczak; Additional reporting by Lisa
Mattackal, Ankika Biswas in Bengaluru and Richard Chang
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