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
-
A Guide to Music Streaming ServicesDeals Our guide to music streaming services from Spotify to Amazon Music, Tidal to Apple Music and how to find music streaming deals.
-
Stock Market Today: Markets Reflect Global UncertaintyExuberance fades as investors confront micro challenges and a murkier macro environment.
-
Stock Market Today: Markets Reflect Global Uncertainty
Exuberance fades as investors confront micro challenges and a murkier macro environment.
-
What's Better Than Investing in Crypto? These 'Boring' PicksCryptocurrency may be good for a thrill, but older investors are better off with assets like bonds, guaranteed annuities, CDs and maybe dividend-paying stocks.
-
Four Actions to Lessen Retirement Stress for Women (and Men)Saving for retirement is anxiety-inducing for everyone, especially women. Following this four-part action plan can help improve your financial security.
-
Year-End Retirement Tax Planning Actions if You Have $1 Million or MoreConsider implementing these four strategies before December 31 to potentially improve your tax situation for this year and the future.
-
Five Simple Strategies to Ensure a Happy RetirementEmployer retirement plans are great, but individual responsibility plays a huge role in retirement success. Here's how to empower yourself.
-
25 Financial Moves to Consider Before December 31Tidying up your financial house before the New Year kicks off will put you in a great position to have a financially satisfying and successful 2025.
-
Five Side Hustles You Could Turn Into a Full-Time BusinessYou might be able to capitalize on your expertise in ways you haven't thought of, possibly even leading to quitting your 9-to-5 job to do what you love.
-
Stock Market Today: Nasdaq Nabs New High After Jobs DataThe S&P 500 also closed at its highest level ever, while the Dow Jones Industrial Average was pressured by another down day for UnitedHealth stock.
