- Weekly earnings indices
- The S&P 500 breaks the 50-day moving average
- Indexes up: Dow 0.85%, S&P 1.29%, Nasdaq 1.66%
NEW YORK, March 3 (Portal) – Wall Street rose late on Friday towards the end of a week of ups and downs as US Treasury yields eased and economic data helped investors overlook a growing likelihood that the Federal Reserve would ease its tightening policy will remain in effect for longer than expected.
All three US stock indices were positive, led by the tech-heavy Nasdaq, which received a solid boost from market-leading, rate-sensitive megacaps. US Treasury yields fell on the back of comments from Fed officials calming fears about inflation and interest rates.
For the week, indices appear to be on course for gains, with the S&P enduring a three-week losing streak and the Dow posting its first weekly gain since late January.
This week, the benchmark S&P 500 also broke its 50-day and 200-day moving averages, two closely watched technical levels.
“You have an oversold market that has traded down to key support levels and above the 50-day moving average resistance level,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “It’s an indication that a shift is on the horizon. And a lot of people are suspicious, but they don’t want to be left behind.”
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Economic data released on Friday showed steady demand for services, with the Purchasing Managers’ Indices (PMI) from the Institute for Supply Management and S&P Global suggesting activity in the sector continues to pick up even as input prices fall.
“There’s nothing to suggest we’re falling off a cliff,” Pavlik added. “The job market is still very strong and this morning’s data points to a soft landing.”
As of 1:56 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 279.29 points, or 0.85%, to 33,282.86, the S&P 500 (.SPX) was up 51.18 points, or 1.29% 4,032.53 and the Nasdaq Composite (.IXIC) added 189.80 points, or 1.66%, to 11,652.78.
Of the 11 major sectors in the S&P 500, all but Consumer Staples (.SPLRCS) were in positive territory, with Communication Services (.SPLRCL) and Consumer Discretionary (.SPLRCD) posting the largest percentage gains.
The fourth-quarter earnings season is nearing its final stretch, and all but seven companies in the S&P 500 have reported. According to Refinitiv, quarterly results beat consensus estimates 68% of the time.
Overall, however, analysts believe fourth-quarter earnings for the S&P 500 will have fallen 3.2% year-on-year, and expect negative year-over-year numbers for the first two quarters of 2023. Three-quarter earnings recession in the final months of the year 2022, according to Refinitiv.
Apple Inc (AAPL.O) rose 2.9% after Morgan Stanley said the stock could climb more than 20% this year on a potential hardware subscription.
Broadcom Inc (AVGO.O) gained 5.5% after the chipmaker forecast second-quarter revenue that beat analysts’ estimates as increased investment in AI boosted chip demand.
Among the losers, Costco Wholesale Corp (COST.O) slipped 2.8% after missing out on revenue as high inflation dampened consumer demand.
Chipmaker Marvell Technology Inc (MRVL.O) slipped 6.3% after the company missed quarterly earnings and disappointing revenue guidance.
Rising issues predominated on the NYSE at a 4.63 to 1 ratio; on the Nasdaq, a 2.33 to 1 ratio favored movers.
The S&P 500 posted 21 new 52-week highs and two new lows; the Nasdaq Composite posted 73 new highs and 49 new lows.
Reporting by Stephen Culp; Additional reporting by Sruthi Shankar in Bengaluru; Editing by Cynthia Osterman
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