Stocks may have ended Friday's session mixed, but all major averages finished the week in the green for three straight weeks of gains. For the day, the Dow Jones Industrial Average rose to a record close, while the S&P 500 and Nasdaq slipped slightly lower despite the former notching a record high in the prior session.
For the week, the S&P 500 outperformed with a rise of 1.6%, while both the Dow and Nasdaq climbed over 1%.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
U.S. service sector PMI climbs higher, U.S. manufacturing sector PMI dips:
U.S. service sector activity increased by a greater-than-expected margin in early October, while the manufacturing sector posted a larger-than-expected dip, according to new data from IHS Markit published on Friday.
IHS Markit's U.S. services purchasing managers' (PMI) index rose to 58.2 in the preliminary October print. The PMI had come in at 54.9 in Sept, and the October print reflected the strongest level of growth in three months. Readings above the neutral level of 50.0 indicate expansion in a sector.
"Driving growth in October was the quickest rise in inflows of new work since July, that was commonly attributed to stronger demand conditions as COVID-19 worries eased during the month," IHS Markit said in its release. "Concurrently, service providers recorded more intense capacity pressures amid reports that firms were struggling to cope with growing sales due to labour issues and supplier delays."
The manufacturing sector, however, posted a larger-than-expected drop in its October PMI versus September, mostly reflecting the impact of rising input costs, as well as materials and labor shortages. The U.S. manufacturing PMI declined to 59.2 in early October from 60.7 in September, marking a third straight monthly decline.
"The slower improvement in conditions reflected a weaker expansion in output and a moderation in order book growth during October," the firm added. "Factory production rose only modestly, with the pace of increase the slowest since July 2020 as output continued to be hampered by supply chain issues and shortages. October saw a record lengthening of suppliers' delivery times. Supply issues and sustained sales growth prompted firms to further increase their buying activity and inventories."
Here's how market benchmarks started trading soon after opening bell:
S&P 500 Index: -0.07% or -3.03 points to 4,546.12
Dow Jones Industrial Average: -57.41% or -14.98 points to 35,607.72
Nasdaq Composite Index: -0.38% or -57.44 points to 15,158.06
