The U.S. stock market closed higher last Friday, buoyed by robust fourth-quarter earnings reports and favorable economic data. Major indices including the Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 all ended in positive territory for the week. Key sectors showed strong performance, particularly technology and consumer discretionary, while industrial production and housing starts provided mixed signals.
Market Indices Reflect Strong Gains
Major market indices experienced significant gains as investors reacted positively to corporate earnings and economic figures. The Dow Jones Industrial Average climbed 0.8%, or 334.70 points, closing at 43,487.83. Among its 30 components, 23 stocks finished in positive territory, with only seven declining. Meanwhile, the tech-heavy Nasdaq Composite surged by 1.5%, gaining 291.91 points to close at 19,630.20. The S&P 500 also saw a 1% increase, rising 59.32 points to end at 5,996.66. Nine out of eleven broad sectors within the S&P 500 closed positively, with technology services, consumer discretionary, and financials leading the charge.
The market's upward momentum was further supported by a decrease in the CBOE Volatility Index (VIX), which fell by 3.8% to 15.97, indicating reduced investor anxiety. Trading volume on Friday totaled 14.57 billion shares, slightly below the recent 20-session average of 15.65 billion. Notably, the S&P 500 recorded 24 new 52-week highs without any new lows, while the Nasdaq Composite saw 66 new highs and 73 new lows.
Economic Data and Corporate Earnings Drive Market Sentiment
Positive fourth-quarter earnings results from key companies contributed significantly to the market's upbeat performance. Independent Bank Corp. reported adjusted earnings of $1.21 per share, surpassing expectations of $1.16, and revenues of $176.85 million, beating forecasts by 0.59%. This led to a 4.9% rise in the company's stock price. Similarly, Schlumberger Limited announced adjusted earnings of $0.92 per share, exceeding the estimated $0.90, and revenues of $9.28 billion, ahead of predictions by 1.17%. Consequently, Schlumberger's shares climbed 6.1%. Both companies' strong performances underscored investor confidence in the market.
In addition to corporate earnings, economic indicators also played a crucial role in shaping market sentiment. The U.S. housing market exhibited mixed trends in December, with building permits decreasing to 1,483,000 but housing starts increasing to 1,499,000. Industrial production for December rose by 0.9%, while capacity utilization increased to 77.6%. These economic metrics suggested a gradual recovery, albeit with some cautionary signs. For the week, the Dow increased by 3.7%, the S&P 500 advanced 2.9%, and the Nasdaq gained 2.4%, reflecting a generally optimistic outlook among investors.