Stock Indexes Experience Slight Rise Following Yellen’s Announcement
The Dow Jones Industrial Average, along with other major indexes, closed slightly higher on Friday but ended the week with a loss, breaking its nine-week winning streak. The Dow saw mixed action throughout Friday’s trading session and managed to secure a small 0.1% gain at the close. However, the index ended the first week of the new year 0.6% lower after nine consecutive weeks of gains.
The S&P 500 rose by 0.2% after falling from session highs in the stock market today, and held a weekly loss of 1.5%. Meanwhile, the Nasdaq sank 0.2%, putting it 3.3% lower for the week. Volume on the New York Stock Exchange was higher, but the Nasdaq saw lower volume compared to the same time on Thursday.
December’s employment report showed a higher increase in new jobs than expected. The economy added 216,000 jobs vs. views for 164,000, according to Econoday estimates. December also saw stronger hiring than November’s revised payroll increase of 173,000. Following the release, Treasury Secretary Janet Yellen said that the economy was on its way to a soft landing.
Among Dow Jones stocks, Apple (AAPL) slid and fell further below the 50-day moving average in a five-day losing streak. It is now testing its 200-day moving average. Microsoft (MSFT) remained in a base with a buy point of 384.30.
Verizon (VZ) and Boeing (BA) led gainers on the Dow. VZ is in a buy zone from a 38.88 entry. UnitedHealth (UNH) and IBM (IBM) lagged with losses of more than 1%. And Walgreens Boots Alliance (WBA) turned higher after an earnings sell-off on Thursday.
Outside the Dow Jones index, Constellation Brands (STZ) rose after it reported third-quarter results earlier Friday. Sales of $2.4 billion increased just 1% from the prior year, but earnings for the alcoholic beverages maker of $3.19 per share were 13% higher. Shares rose 3% and cleared resistance at the 200-day moving average, but a buy point at 273.65 remains distant.
