US close: Stocks power on to record levels as GDP numbers shrugged aside
US stocks finished at record highs on Friday, with strong results from Intel helping to underpin the mood following the release of disappointing fourth-quarter growth figures, as the dollar came off lows.
The Dow Jones Industrial Average rose 223.92 points to a record at 26,616.71. The S&P 500 index gained 33.62 points to 2,872.87 and the Nasdaq Composite finished a strong 94.61 points higher to 7,505.77 - records also for both indices.
Preliminary data out earlier from the Commerce Department showed the US economy grew more slowly than expected in the final quarter of last year. Gross domestic product rose at an annualised rate of 2.6% in the fourth quarter of 2017 following 3.2% growth in the previous quarter and 3.1% in the second quarter, missing expectations of 3% growth.
Compared with a year earlier, GDP grew 2.5% in the final three months of last year, marking the strongest calendar year for economic growth since 2014.
Personal consumption expenditures rose at an annual rate of 3.8% in the fourth quarter compared to 2.2% growth in the third, with spending on goods the highest in more than a decade.
But investors were happy to shrug off the news, focusing instead on a stellar performance from Intel, which surged nearly 10% after better-than-expected quarterly earnings on Thursday
Elsewhere, Rockwell Collins nudged up after its first-quarter earnings and sales exceeded estimates.
Honeywell rose after lifting its 2018 earnings outlook, while Nike edged up following a report that William Ackman’s Pershing Square Capital Management has taken a stake in the group.
Wynn Resorts fell about 10.1%, after a report in the Wall Street Journal claimed the casino firm’s owner Steve Wynn, has a long history of sexual misconduct.
Colgate-Palmolive shares looked less bright after weaker-than-expected fourth quarter results while Starbucks shares left a bitter taste the ubiquitous coffee house said same-store sales were below expectations.
Market participants also digested President Trump’s speech at the World Economic Forum in Davos, during which he said the US will no longer turn a blind eye to unfair trade practices.
Trump pledged to always put the US first but said this does not mean America alone.
"I'm here to deliver a simple message - there has never been a better time to hire, to build, to invest and to grow in the United States. America is open for business and we are competitive once again."
In currency markets, the dollar was still under the cosh but paring some of its earlier losses against the pound and the euro as it found some support from Trump’s remarks, after he said that ultimately he wants the currency to be strong.
IG analyst Chris Beauchamp said: “Mr Trump seems almost neutral on the currency, but at least he didn’t talk it down even more. With non-farm payrolls and a Fed meeting next week, the time could be ripe for a dollar rebound in the near-term, but don’t write off the bear market in the greenback just yet .”
Dow Jones - Risers
Intel Corp. (INTC) $50.08 10.55%
Pfizer Inc. (PFE) $39.00 4.78%
3M Co. (MMM) $258.63 2.48%
Microsoft Corp. (MSFT) $94.06 1.87%
Wal-Mart Stores Inc. (WMT) $108.39 1.68%
Cisco Systems Inc. (CSCO) $42.56 1.58%
McDonald's Corp. (MCD) $178.35 1.54%
Walt Disney Co. (DIS) $112.19 1.48%
Coca-Cola Co. (KO) $48.52 1.44%
Unitedhealth Group Inc. (UNH) $248.47 1.34%
Dow Jones - Fallers
Caterpillar Inc. (CAT) $167.06 -1.36%
Procter & Gamble Co. (PG) $87.70 -0.69%
Goldman Sachs Group Inc. (GS) $268.14 -0.33%
General Electric Co. (GE) $16.13 -0.31%
American Express Co. (AXP) $99.63 -0.06%
Boeing Co. (BA) $343.22 0.03%
United Technologies Corp. (UTX) $137.97 0.17%
Apple Inc. (AAPL) $171.51 0.23%
Chevron Corp. (CVX) $131.19 0.41%
Dowdupont Inc. (DWDP) $77.02 0.48%
S&P 500 - Risers
AbbVie Inc (ABBV) $123.21 13.77%
Intel Corp. (INTC) $50.08 10.55%
Gilead Sciences Inc. (GILD) $85.46 5.26%
Microchip Technology Inc. (MCHP) $96.91 4.79%
Pfizer Inc. (PFE) $39.00 4.78%
CF Industries Holdings Inc. (CF) $42.13 4.26%
Spectra Energy Corp. (SE) $13.29 4.24%
Biogen Inc (BIIB) $367.91 4.01%
Ameriprise Financial Inc. (AMP) $179.84 3.88%
L3 Technologies Inc (LLL) $216.92 3.73%
S&P 500 - Fallers
Wynn Resorts Ltd. (WYNN) $180.29 -10.12%
Colgate-Palmolive Co. (CL) $73.56 -4.85%
Regeneron Pharmaceuticals Inc. (REGN) $374.36 -4.46%
Starbucks Corp. (SBUX) $57.99 -4.23%
Endo International Plc (ENDP) $7.14 -3.90%
Ball Corp (BLL) $38.12 -2.78%
Clorox Co. (CLX) $142.62 -2.39%
Air Products & Chemicals Inc. (APD) $169.77 -2.39%
Hasbro Inc (HAS) $93.39 -2.26%
Bed Bath & Beyond Inc. (BBBY) $22.53 -2.17%
Nasdaq 100 - Risers
Intel Corp. (INTC) $50.08 10.55%
Maxim Integrated Products Inc. (MXIM) $59.01 7.06%
JD.com, Inc. (JD) $50.50 6.59%
Mercadolibre Inc. (MELI) $381.86 6.05%
Gilead Sciences Inc. (GILD) $85.46 5.26%
Microchip Technology Inc. (MCHP) $96.91 4.79%
Biogen Inc (BIIB) $367.91 4.01%
Align Technology Inc. (ALGN) $283.97 3.81%
Sirius XM Holdings Inc (SIRI) $5.98 3.64%
Seagate Technology Plc (STX) $54.94 3.33%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $180.29 -10.12%
Regeneron Pharmaceuticals Inc. (REGN) $374.36 -4.46%
Starbucks Corp. (SBUX) $57.99 -4.23%
Hasbro Inc (HAS) $93.39 -2.26%
Intuitive Surgical Inc. (ISRG) $440.24 -2.13%
Kraft Heinz Co. (KHC) $79.39 -0.35%
Verisk Analytics Inc. (VRSK) $98.31 -0.28%
Mondelez International Inc. (MDLZ) $44.42 -0.11%
American Airlines Group (AAL) $53.07 0.04%
Priceline Group Inc (PCLN) $1,950.48 0.04%