The stock market saw a notable rally as the S&P 500 and Nasdaq Composite both achieved seven consecutive days of gains. Investors were buoyed by positive economic data and are now looking ahead to the Jackson Hole Economic Symposium for further insights.
Key Takeaways
- S&P 500 and Nasdaq Composite: Both indexes notched seven consecutive days of gains.
- Economic Data: Positive indicators include cooling inflation and resilient consumer spending.
- Jackson Hole Economic Symposium: Investors are keenly awaiting Fed Chair Powell’s speech.
- Single-Stock Movements: Alphabet, Applied Materials, and H&R Block saw significant activity.
Market Overview
Stocks opened lower on Friday but climbed into positive territory by lunchtime. Investors were encouraged by this week’s economic data, which showed that inflation continued to cool and consumer spending remained resilient. The University of Michigan reported a 2.1% rise in its Consumer Sentiment Index for August, marking its first increase in five months. However, views on current conditions fell to their lowest level since December 2022.
Housing Market Data
The Census Bureau released data showing that housing starts fell by 6.8% in July to a lower-than-expected 1.238 million. Building permits, a better indicator of future construction, were down 4% to 1.42 million. José Torres, senior economist at Interactive Brokers, noted that while consumer sentiment improved, construction activity plunged to levels last seen during the peak of COVID-19 in the spring of 2020.
Jackson Hole Economic Symposium
The most anticipated event next week is Fed Chair Powell’s speech at the Jackson Hole Economic Symposium. Michael Gapen, head of U.S. economics at BofA Global Research, suggested that the Federal Open Market Committee (FOMC) might indicate they are close to easing monetary policy. However, Powell could adopt a more cautious tone, especially following the weak July jobs report.
Single-Stock News
- Alphabet (GOOGL): Shares climbed 1% on Friday but ended the week down 0.4%, marking its sixth straight weekly decline, the longest on record. Concerns are growing that a recent antitrust ruling against Google could result in a forced breakup.
- Applied Materials (AMAT): The semiconductor equipment firm’s shares fell 1.9% despite reporting higher-than-expected earnings and revenue for its fiscal Q4. Robust demand from China helped offset slower recovery in other regions.
- H&R Block (HRB): Shares surged 12.1% after the tax provider’s fiscal Q4 results beat expectations. The company also announced a 17% increase in its quarterly dividend and a new $1.5 billion stock buyback plan.
Index Performance
The main indexes showed positive performance:
- Dow Jones Industrial Average: Up 0.2% at 40,659.
- Nasdaq Composite: Up 0.2% at 17,631.
- S&P 500: Up 0.2% to 5,554.
Investors are now looking forward to next week’s developments at the Jackson Hole Economic Symposium, hoping for more clarity on the future path of monetary policy.
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