The US stocks on Friday edged higher as the S&P 500 and the Dow closed at record highs during a broad rally, but the trading was light with many participants of the market opted out for the Christmas holiday.
Continuing with the advancement, major indices closed the week with second consecutive weekly gain as the S&P lifted by 5.9 percent in seven sessions. On Friday, the benchmark index S&P hit its 52nd record close of the year, which is the fourth-best annual record ever and the most since 1995. On the other hand, the Dow increased for a seventh straight day, with its longest streak since March last year.
Adam Sarhan, chief executive of New York-based Sarhan Capital, said, “The overall trend remains higher, but we’re reaching a point where we’re overbought. Six percent since last Tuesday is such a strong move in such a short period of time, even if bulls have the upper hand in the longer term.”
According to the analysts, the gains witnessed recently have arrived on strong economic data, including accommodative measures and strong sentiments from the Federal Reserve Bank and a bullish reading on economic growth recorded earlier this week.
The gains recorded in the day were broad, with eight out of the 10 primary sectors of S&P 500 ending up on the day, while no sector ending more than 0.1 percent lower. On the other hand, the utility sector witnessed the day’s strongest, with gain of 1.2 percent and the healthcare sector surged 0.8 percent.
The S&P 500 added 6.89 points or 0.33 percent to 2,088.77, while the Nasdaq Composite gained 33.39 points or 0.7 percent to 4,806.86. The Dow Jones industrial average surged 23.5 points or 0.13 percent to 18,053.71.
For the week, the S&P surged 0.9 percent, the Dow rose 1.4 per cent, and the Nasdaq increased 0.9 percent. Analysts said that it was the ninth positive week in the past ten for both the S&P and the Dow.
During the first trading session after Christmas, the S&P Retail index increased 0.5 percent.
Amazon.com Inc increased 2 percent to USD 309.18, Best Buy Co surged 0.6 percent to USD 39.14 and Macy’s Inc dropped 0.3 percent to USD 64.05.
“Things are looking positive since the shopping season coincided with a big drop in crude oil, which means lower gas prices. “That translates to more disposable income, which could mean stronger retail sales,” Sarhan said.
The S&P 500 index was recorded 70 new 52-week highs as well as five new lows; while the Nasdaq Composite posted 133 new highs as well as 28 new lows.