The tech sector was the clear winner Friday, thanks to solid gains for several Magnificent 7 stocks. But it was the S&P 500's inaugural close above the psychologically significant 5,000 mark that really made headlines.
At the close, the Nasdaq Composite was up 1.3% to 15,990 and the S&P 500 had gained 0.6% to 5,026 – settling above the 5,000 level for the first time ever.
"On the surface, there is no difference between 5,000 and 4,999, but these big round numbers do hold psychological significance for investors," says Ryan Detrick, chief market strategist at Carson Group. "It is a great reminder of how far we've come and it wasn't that long ago that everyone on TV was telling us about a near-certain bear market and recession."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Dow Jones Industrial Average, meanwhile, slipped 0.1% to 38,671 as Walt Disney (DIS, -2.0%) gave back some of Thursday's earnings-related gains.
The S&P 500 and Nasdaq both notched weekly wins, marking the 14th time out of the past 15 weeks the two indexes closed higher on the week. This is a feat not accomplished by the S&P 500 since 1972, according to Dow Jones Market Data, while the Nasdaq hasn't strung together a winning streak like this since 1997.
Nvidia outperforms its fellow Magnificent 7 stocks
A number of mega-cap tech stocks helped fuel today's upside in the Nasdaq and S&P 500. Nvidia (NVDA), for one, jumped 3.6% after the Biden administration said it will invest $5 billion in semiconductor-related research and development.
Amazon.com (AMZN, +2.7%), Alphabet (GOOGL, +2.1%) and Microsoft (MSFT, +1.6%) were also notable gainers Friday.
PepsiCo, Expedia slump after earnings
Elsewhere, PepsiCo (PEP) stock fell 3.6% after the snacks and soft drinks maker reported fourth-quarter earnings. While the company beat on the bottom line, revenue of $27.9 billion, down 0.5% year-over-year, fell short of analysts' expectations. This was the first YoY decline in revenue for Pepsi since Q2 2020. PEP also lowered its full-year organic revenue growth forecast, citing slowing demand in reaction to higher prices.
CFRA Research analyst Garrett Nelson downgraded PEP to Buy from Strong Buy after earnings to reflect "near-term concerns related to slowing earnings growth (2024 growth should be about half the year-over-year rate achieved in 2023) and volumes [that] are likely to remain challenged by consumer pushback to product price increases."
Expedia (EXPE) was another post-earnings loser, sinking 17.8% after releasing its quarterly results. While the online travel company reported higher-than-expected fourth-quarter earnings and revenue, bookings of $21.7 billion came in below what Wall Street was anticipating. Separately, the company said CEO Peter Kern will be replaced by Ariane Gorin, current president of Expedia for Business, effective May 13.
January CPI on deck
In economic news, the Bureau of Labor statistics downwardly revised the December Consumer Price Index (CPI) to a month-over-month gain of 0.2% vs the previous reading of 0.3%.
Dana Peterson, chief economist of The Conference Board, said in an interview with Bloomberg that the revision was "good news," but added that it amounts to a "nothing burger." Rather, the key event will be next Tuesday morning's release of the January CPI.
Related content
- Kiplinger's Earnings Calendar for Feb. 12-16
- Airbnb To Start Charging A 2% Cross-Currency Guest Fee
- Super Bowl Indicator: Should Bulls Root for the 49ers or Chiefs?
-
Stocks Close Out Strong Month With Solid Amazon Earnings: Stock Market TodayAmazon lifted its spending forecast as its artificial intelligence (AI) initiatives create "a massive opportunity."
-
I Just Paid Off My Car. Can I Downgrade My Car Insurance Now?You've gotten rid of that car payment. Can you save even more by downgrading your car insurance? Here's what to consider.
-
Stocks Close Out Strong Month With Solid Amazon Earnings: Stock Market Today
Amazon lifted its spending forecast as its artificial intelligence (AI) initiatives create "a massive opportunity."
-
Are You Retired? Here's How to Drop the Guilt and Spend Your Nest EggTransitioning from a lifetime of diligent saving to enjoying your wealth in retirement tends to be riddled with guilt, but it doesn't have to be that way.
-
Government Shutdown Freezes National Flood Insurance Program: What Homeowners and Buyers Need to KnowFEMA's National Flood Insurance Program is unavailable for new customers, increased coverage or renewals during the government shutdown.
-
Separating the Pros From the Pretenders: This Is How to Tell if You Have a Great AdviserDo you leave meetings with your financial adviser feeling as though you've been bulldozed into decisions or you're unsure of what you're paying for?
-
What Netflix Stock's 10-for-1 Split Means for InvestorsNetflix announced its long-awaited stock split after Thursday's close. NFLX will start trading on a split-adjusted basis ahead of the November 17 open.
-
Stocks Sink with Meta, Microsoft: Stock Market TodayAlphabet was a bright light among the Magnificent 7 stocks today after the Google parent's quarterly revenue topped $100 billion for the first time.
-
Five Downsides of Dividend Investing for Retirees, From a Financial PlannerCan you rely on dividend-paying stocks for retirement income? You'd have to be extremely wealthy — and even then, the downsides could be considerable.
-
Dow, S&P 500 Slip on December Rate Cut Worries, Nvidia Boosts Nasdaq: Stock Market TodayNvidia became the first company ever to boast a $5 trillion market cap, but it wasn't enough to lift the Dow and the S&P 500.
