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.
Sign up for Kiplinger’s Free E-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
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market TodayThe main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Retirement Health Care Costs Are On the Rise: What You Need to KnowA 65-year-old retiree will face significantly higher lifetime health care costs than they would have a year ago, even with Medicare. Here are the surprising totals.
-
Stocks Can't Hold Meta, Microsoft Gains: Stock Market Today
The main indexes all opened higher Thursday on impressive Big Tech earnings, but momentum faded into the close.
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
How to Invest for a Fall Interest Rate Cut by the FedA lot can happen between now and then, but the probability the Fed cuts interest rates before the end of the year is better than 85%.
-
You Don't Have to Be Wealthy to Need a Wealth ManagerNavigating complex financial decisions is hard on your own, no matter how much money you have. A wealth manager can provide comprehensive financial planning, investment management, risk management and more.
-
Despite Tariffs, These Investment Experts Are Bullish on European EquitiesEuropean equities were one of the better-performing investments during the first half of 2025. They could be a good long-term prospect for U.S. investors needing to diversify, according to these investment managers.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
What Federal Interest Rates Mean for Your Grocery BillThe relationship between grocery prices and the Federal Reserve has plenty of back-and-forth. Understand how they interplay.
-
5 Undervalued Stocks to Buy NowThere are plenty of high-quality undervalued stocks to buy right now, you just need to know where to look. Here, we highlight five of our top picks.
