Stocks Close Higher Friday With Spending Deal and National Emergency Declaration
- By Julie Young
The Dow Jones Industrial Average closed at 25,883.25 on Friday with a gain of 443.86 points or 1.74%. The S&P 500 closed at 2,775.60 for a gain of 29.87 points or 1.09%. The Nasdaq Composite closed at 7,472.41 for a gain of 45.46 points or 0.61%. The VIX Volatility Index was lower at 14.88 for a loss of 1.34 points or -8.26%.
For the week, the Dow Jones gained 2.8%, the S&P 500 gained 2.2% and the Nasdaq Composite gained 1.8%. For the year, the Nasdaq has a gain of 12.6%, the Dow Jones has a gain of 11.0% and the S&P 500 has gained 10.7%.
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The intrinsic value of GS
Friday's market movers
President Trump signed Congress' spending deal, ending the long government shutdown debate. On Friday, Trump also declared a national emergency to fund border wall barriers and mitigate immigration issues. The developments, along with positive U.S.-China negotiations extending to next week, increased investors' risk appetite and helped the Dow Jones to gain 1.74%.
In Treasuries, yields were mostly higher on the longer-term end of the yield curve with yields falling on the shorter end. The one-month Treasury yield decreased to 2.425% while the 10-year Treasury yield increased to 2.666%. The U.S. Dollar Index was lower, but the dollar reported gains against the Mexican peso and the Chinese yuan.
Economic reports affecting market trading included the following:
Export and import prices were released. Export prices decreased 0.6% in January and decreased 0.2% year over year. Import prices decreased 0.5% in January and decreased 1.7% year over year.
Industrial production decreased 0.6% in January and increased 3.8% year over year.
The University of Michigan's Consumer Sentiment Index increased to 95.5 from 91.2.
The Baker Hughes North American oil rig count decreased to 1,275 from 1,289.
In the Dow Jones Industrial Average, the following stocks led gains:
Goldman Sachs (GS) 3.23%
JPMorgan (JPM) 3.12%
United Technologies (UTX) 3.00%
Home Depot (HD) 2.61%
Caterpillar (CAT) 2.59%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,567.00 for a gain of 21.90 points or 1.42%. The S&P 600 closed at 974.25 for a gain of 13.10 points or 1.36%. The Dow Jones Small-Cap Growth TSM Index closed at 9,880.90 for a gain of 138.64 points or 1.42%. The Dow Jones Small-Cap Value TSM Index closed at 9,820.73 for a gain of 136.32 points or 1.41%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,911.49 for a gain of 19.83 points or 1.05%; the S&P 100 at 1,216.12 for a gain of 11.32 points or 0.94%; the Russell 3000 at 1,641.33 for a gain of 15.85 points or 0.98%; the Russell 1000 at 1,538.56 for a gain of 14.48 points or 0.95%; the Wilshire 5000 at 28,804.76 for a gain of 311.51 points or 1.09%; and the Dow Jones U.S. Select Dividend Index at 691.99 for a gain of 5.11 points or 0.74%.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 1 Warning Sign with GS. Click here to check it out.
The intrinsic value of GS