(Reuters) – The S&P 500 and Nasdaq closed at record highs on Friday, with both lifted by Apple after data showed some strengths in the US economy.
U.S. corporate activity snapped back to its highest level since early 2019 in August, according to IHS Markit surveys, as companies in both the manufacturing and services sectors saw a rise in new orders.
Another report found that U.S. home sales points in July hit a second straight month in July and house prices hit quite high.
The unexpectedly sharp rise in Markit’s indices this week expands a pattern of chocolate U.S. economic data – including weekly unemployment claims – that paint a picture of a fit recovery from the COVID-19 recession.
“It’s not surprising to see a pickup in manufacturing because the economy has started to reopen, even though pockets of the country have regained their momentum,” said Lindsey Bell, chief investment strategist at Ally Invest. “It’s an encouraging sign and it supports the upside we’ve seen in the markets.”
Apple Inc (AAPL.O) rose 5% as its market value continued to swell after the world’s most valuable publicly traded company reached the $ 2 trillion milestone this week. The iPhone maker on Friday boosted the S&P 500 and Nasdaq more than any other company.
Bets that companies focused on technology, including Apple and Amazon.com (AMZN.O) will emerge stronger from the pandemic set the S&P 500 and the Nasdaq on course to close the week higher.
On Tuesday, the S&P 500 recovered all of its losses caused by the coronavirus-driven decline and joined the Nasdaq in scaling up new peaks. The Dow is still 6% below its total in February.
Investors are also worried about a halt in talks between House Democrats and the White House over the next coronavirus bill, as some 28 million Americans went through the process of collecting unemployment checks.
The Dow Jones Industrial Average .DJI rose 0.69% to end at 27,930.33 points, while the S&P 500 .SPX rose 0.34% to 3,397.16.
The Nasdaq Composite .IXIC climbed 0.42% to 11,311.80.
For the week, the Dow had hardly changed, the S&P 500 rose 0.7% and the Nasdaq added 2.7%.
“There is a cult to buy and sell from there is considered a cross traffic. That’s a very temporary situation, “warned Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.
During Friday’s session, the S&P 500 information technology index jumped. SPPLRCT with 1.2% and industry .SPLRCI increased 0.35%. The two were the strongest sectors.
Tesla (TSLA.O) jumped 2.4% after crossing the $ 2,000 mark for the first time on Thursday, extending its rally ahead of an upcoming stock split.
Deere & Co (DE.N) rose 4.4% after the world’s largest farm equipment maker increased its full-year forecast program.
On US exchanges, 8.4 billion shares changed hands, compared to the average of 9.6 billion for the last 20 sessions.
Declining issues are the progress on the NYSE more than a 1.88-to-1 ratio; on Nasdaq, a 2.04-on-1 ratio favored declines.
The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 30 new lows.
Report by Medha Singh and Sruthi Shankar in Bengaluru; Edited by Cynthia Osterman
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