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* Growth stocks exceed the value of the second week
* Honeywell wins as brokers raise price targets
* March PPI above expectations
* Dow 0.89%, S&P 500 0.77%, Nasdaq 0.51% (new, add weekly earnings, market breadth, volume)
April 9 (Reuters) – The S&P 500 and Dow rose to record highs on Friday, posting a third consecutive weekly rise, partly on the rise in growth stocks, with an increase in the recovery from the end of the day before the quarterly earnings season.
Growth stocks have found their base over the past two weeks after being overtaken by stock stocks for most of the year. A ten-year decline in US Treasury yields from the 14-month high at the end of March encouraged buying growth.
The data showed that US production prices rose more than expected in March, resulting in the largest annual gain in 9-1 / 2 years.
Many investors now expect higher inflation, as the deployment of vaccines helps the U.S. economy recover from the blockades, although stocks showed little concern, as the Federal Reserve has maintained that it will allow inflation exceeds its target.
“That’s why (Powell) was wandering all week, making sure everyone understood that they were expecting a climb and that they were ready for it, it wasn’t a surprise,” said Ken Polcari, managing partner of Kace Capital Advisors in Jupiter, Florida.
“That’s why the market isn’t backing down, because it was successful in anxiety and kept people from getting scared.”
The Dow Jones Industrial Average rose 297.03 points, or 0.89%, to 33,800.6, the S&P 500 gained 31.63 points, or 0.77%, to 4,128.8, and the Nasdaq Composite add 70.88 points, or 0.51%, to 13,900.19.
During the week, the S&P was up 2.71%, the Dow was up 1.96% and the Nasdaq was up 3.12%.
Banks will begin the first quarter earnings season next week with Goldman Sachs, JPMorgan and Wells that Fargo will have to report on Wednesday. Analysts expect the profits of the S&P 500 companies to show a 25% jump over the previous year, according to data from Refinitiv IBES. This would be the strongest performance of the quarter since 2018.
Megacap names, such as Apple, Amazon and Microsoft, which are on the growth index, advanced at the pace of the S&P 500. Amazon shares rose 2.21% as warehouse workers ‘Alabama rejected the attempt to form a union.
The Russell 1000 growth index, made up largely of technology stocks, outperformed its value counterpart, consisting mainly of cyclical stocks such as financial and energy stocks, for a second week after the Treasury yields fell by a further date. long.
Bank of America’s weekly cash flow figures showed that investors have invested more money in equities over the past five months than in the past 12 years.
A 3.24% gain in Honeywell helped lift the Dow as Jefferies and JP Morgan raised their price targets on shares of the U.S. aircraft parts maker.
The volume of US stock markets was 8,698 million shares, compared to the average of 11,771 million in the full session of the last 20 trading days. (Report by Chuck Mikolajczak; Edited by David Gregorio)