S&P 500 and Dow reach new record highs

Both the S&P 500 and the Dow Jones Industrial Average surged to new record highs on Friday, marking six consecutive weeks of gains.

The broad market benchmark rose 0.40 per cent, closing at 5,864.67. The Dow Jones Industrial Average increased by 36.86 points, or 0.09 per cent, to finish at 43,275.91. The Nasdaq Composite, buoyed by a post-earnings surge from Netflix, ended the day up 0.63 per cent at 18,489.55.

All three major averages achieved their sixth straight positive week, representing the longest stretch of weekly advances for both the Dow and S&P 500 in 2024, which ended 0.96 per cent and 0.85 per cent higher, respectively. The Nasdaq gained 0.80 per cent.

More than 70 S&P 500 companies have reported earnings this season, with 75 per cent exceeding expectations, according to FactSet.

Looking at the S&P 500 sectors, most ended the day in positive territory, with Communications Services leading the pack, up 0.92 per cent. The only sector to finish in the red was Energy, which declined by 0.35 per cent.

Despite minimal action in Friday trading, small-cap stocks had a strong week. The small-cap-focused Russell 2000 hovered around flat for the session but is on track to finish the week approximately 2 per cent higher. In comparison, the broader S&P 500 has risen by less than 1 per cent this week.

In company news, Netflix soared 11 per cent on Friday after the streaming giant surpassed Wall Street’s earnings and revenue estimates for the third quarter, reporting a 35 per cent increase in ad-tier memberships compared to the previous three-month period. Procter & Gamble also delivered better-than-expected earnings, although its revenue fell short of estimates.

Shares of CVS Health plummeted 8 per cent after the pharmacy chain announced that long time executive David Joyner has replaced Karen Lynch as CEO. Additionally, CVS provided third-quarter adjusted earnings guidance of $1.05 to $1.10 per share, significantly below the FactSet consensus estimate of $1.69 per share.

Futures

The SPI futures are pointing to a 0.5 per cent gain.

Currency

One Australian dollar at 7.40am was buying 67.03 US cents.

Commodities

Gold added 0.83 per cent. Silver gained 4.59 per cent. Copper rose 1.38 per cent. Oil lost 2.05 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.32 per cent, Frankfurt added 0.38 per cent, and Paris gained 0.39 per cent.

Turning to Asian markets, Tokyo’s Nikkei added 0.18 per cent , while Hong Kong’s Hang Seng gained 3.61 per cent and China’s Shanghai Composite rose 2.91 per cent.

On Friday, the Australian share market closed 0.87 per cent lower at 8283.

Ex-dividends

Clover Corporation (ASX:CLV) is paying 0.75 cents fully franked
Sandon Capital Ltd (ASX:SNC) is paying 2.75 cents fully franked
WAM Capital Limited (ASX:WAM) is paying 7.75 cents 60 per cent franked

Dividends payable

Capitol Health Ltd (ASX:CAJ)
Charter Hall Social Infrastructure REIT (ASX:CQE)
Karoon Energy Ltd (ASX:KAR)
Kelsian Group Ltd (ASX:KLS)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

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