A slow start for stocks turned into a fine finish Friday as investors took in a raft of economic data and cheered news that the government had once again avoided a shutdown.
Friday's economic calendar was full thanks to a handful of updates on the manufacturing sector and several Fed officials speaking throughout the day. Most notable was the Institute for Supply Management's Manufacturing Purchasing Managers Index (PMI), which fell 1.3% from January to February to land at 47.8%. This is the 16th straight month the index has been below the 50 level, which indicates contraction.
In addition to softening demand, "the production gauge slipped back into contraction territory after expanding in January, while the employment index contracted for the fifth straight month, pointing to a drop in manufacturing payrolls in February," says Jay Hawkins, senior economist at BMO Capital Markets. The economist thinks the manufacturing sector will continue to struggle until the Fed starts cutting interest rates.
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.
Dell soars after earnings, dividend hike
In single-stock news, Dell (DELL) surged 31.5% after the PC maker reported earnings. In its fourth quarter, Dell reported higher-than-expected earnings of $2.20 per share on $22.3 billion in revenue. The company credited "strong AI-optimized server momentum" for its strong results, with orders up 40% from Q3 and Dell's backlog nearly doubling.
Moreover, Dell hiked its annual dividend by 20% to $1.78 per share.
"Dell in our view is uniquely positioned for the generative AI opportunity because it operates on 'both sides of the fence' between the PC market and the enterprise IT infrastructure market," says Argus Research analyst Jim Kelleher (Buy). For the current fiscal year, Kelleher expects "PC growth and favorable mix, enterprise recovery, and AI acceleration to drive full-year revenue recovery and margin expansion."
NYCB stock notches lowest close in 27 years
On the other hand, New York Community Bank (NYCB) tumbled 26% to $3.545 – its lowest close since January 1997 – following several concerning headlines. The regional bank said Thursday that Alessandro DiNello will replace Thomas Cangemi as CEO, effective immediately.
Separately, the company said in a regulatory filing that management "identified material weaknesses in the Company's internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities." NYCB added that it will unveil a remediation plan to address these "material weaknesses" in an upcoming filing.
The embattled bank stock's woes began in late January when the company posted a surprise quarterly loss and slashed its dividend due to an unexpected surge in loan-loss reserves.
"The comments from the bank over the past month have been demonstrating they were struggling to meet the new reserve requirements mandated after the acquisition [of Signature Bank in March 2023]," says Brian Mulberry, client portfolio manager at Zacks Investment Management. "Because their balance sheet basically doubled, they crossed into a different threshold of reserve requirement and the CEO seemed unaware that outcome would be such a burden."
As for the main indexes, the Dow Jones Industrial Average rose 0.2% to 39,087, while the S&P 500 (+0.8% at 5,137) and the Nasdaq Composite (+1.1% at 16,274) notched new record closes.
Related content
- What To Know About Chrysler's Jeep Grand Cherokee Recall
- Veterans Turn Their Fight to the DEA: This Week in Cannabis
- Kiplinger's Earnings Calendar for This Week
-
3M, GM, Blue Chips Lead to the Upside: Stock Market TodayThe S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Social Security Payment Schedule for 2026Find out when you can expect your 2026 Social Security payments and the date you get paid when your scheduled day falls on a holiday.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market Today
The S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs InSome brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling VictimSome stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement AccountsWhile alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This TodayDon't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With MoneyConsider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
-
Six Warren Buffett Quotes Every Retiree Should Live ByThe 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
