The main Wall Street indexes reached another historical high on Friday. The blue-chip index Dow Jones Industrial Average jumped by 243.95 points to a level of 27,332.03 points. The broader S&P 500 added 0.5% to its value and ended the day at 3,013.77 points, registering its first closing at more than 3,000 points. The Nasdaq Composite advanced by 0.6% to 8,244.14 points.
The main US indexes crossed a number of milestones and reached a steady growth this week after Federal Reserve Governor Jerome Powell hinted for lowering of interest rates. Dow Jones ended the session at more than 27,000 points for the first time on Thursday, and with the increase on Friday its growth for the week reached 1.5%. S&P 500 reported a weekly increase of 0.8% and Nasdaq finished the week with a 1% jump.
Wall Street’s trading volume on Friday, however, was small, with nearly 30 million shares of the SPDR S&P 500 ETF being traded. This is the lowest level since the beginning of the year. The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 4.18% to 12.39 a new 1-month low.
Market expectations for interest rate cuts are now 100% according to the CME Group’s FedWatch. Traders also set the 20% chance of the Fed lowering interest rates by 50 basis points. The central bank has to decide on interest rates on July 31st. Expectations for lowering interest rates were kept this week, despite higher-than-expected inflation figures. Consumer price indices and producer prices rose more than expected last month, the Labor Ministry said this week. Last week, the US government announced stronger-than-expected job growth in June.
On bond markets, the yields on 10-year US Treasuries declined by 0.02% to 2.118%, while US 30-year US Treasuries grew by 0.006% to 2.645%.
Corporate stocks performance
The stocks of Intel and Caterpillar grew by 2.7% and 3.3%, respectively.
J.B. Hunt Transport Services was the best-performing share in the S&P 500 with an increase of 5.9%. This led to a 1.8% growth in the industrial sector.
The shares of the manufacturer of integrated systems for the analysis of genetic variation and biological function Illumina Inc sank by 16.12% after the company missed its quarterly revenue expectations and slashed its full-year sales guidance by more than 50%. Illumina Inc still expects its core sequencing business to grow about 10% in 2019, but its array services — driven by direct-to-consumer demand — are now expected to fall by 14% on weak demand.
Facebook shares added 1.8% after a report that the Federal Trade Commission voted to impose a record 5 billion USD fine on the company. The Wall Street Journal reported that the FTC voted 3-2 along party lines this week to impose the fine. On Thursday evening President Trump criticized the company’s planned virtual currency project, Libra.
Shares of Snap and Stitch Fix were mixed after Goldman Sachs analyst Heath Terry upgraded both stocks from “neutral” to “buy”. Snap shares rose by 0.26% on Friday, while Stich Fix stock lost 1.67%.
Shares of Milacron Holdings surged 23.8%, after the plastics manufacturer and Hillenbrand announced that Hillenbrand would acquire the firm in a 2 billion USD cash and stock deal, which valued Milacron at a 33.5% premium to Thursday’s closing price.
The top performers on the S&P 500 were JB Hunt Transport Services Inc (+5.90%), Signet Jewelers Ltd (+5.11%) and L Brands Inc (+4.04%), while on the flipside were Illumina Inc (-16.12%), Pacific Gas & Electric Co (-5.11%) and Johnson & Johnson (-4.15%).