Stocks rose on Friday, with the S&P 500 and Nasdaq both ending the day with new record closing highs. Market sentiment increase, despite Thursday's unemployment backside, as fresh economic data reflected swifter recovery than expected in multiple areas of the economy. All three major benchmarks closed the week in either positive or neutral territory, with the S&P 500 leading at an increase of 0.72%, the Nasdaq climbing 0.53%, and the Dow Jones leaving unchanged.
Positively, existing homes sales rose 24.7% in July, following a strong 20.2% increase in June, according to the National Association of Realtors. That increase was largest month-to-month gain in the history of the survey, representing closed sales or contracts signed in May and June. In addition, the supply of existing homes dropped 21.1% annually, with just 1.5 million homes available for sale at the end of July.
In another area of the economy, U.S. manufacturing and services sectors each posted faster than expected expansions in August, according to IHS Markits flash purchasing managers' indices (PMI) data. Manufacturing PMI rose to 53.6 from 50.9 in July, while services PMI climbed to a reading of 54.8 from 50.0 in July. Both readings were above consensus and well within expansion territory.
"August data points to a further improvement in business conditions across the private sector as client demand picked up among both manufacturers and service providers," said Sian Jones, IHS Markit economic, in a statement. "Notably, the renewed increase in sales among service sector firms was welcome news following five months of declines. Encouragingly, firms signaled an accelerated rise in hiring, as greater new business inflows led to increase pressure on capacity."
Here's how the market settled on Friday:
S&P 500 Index (NYSE: SPY): +0.34% or +11.65 points to 3,3397.16
Dow Jones Industrial Average (NYSE: DIA): +0.69% or +190.6 points to 27,930.33
Nasdaq Composite Index (NASDAQ: QQQ): +0.42% or +46.85 points to 11,311.80
For Major Stock News, Apple (NASDAQ: AAPL) shares reached a new all-time high, cementing the tech giant securely above the $2 trillion market valuation mark. Tesla (NASDAQ: TSLA) shares also gained to their highest value above $2,000 as the electric car maker heads towards its upcoming 5-for-1 stock split at the end of the month.
For Sector Performance, most industries left Friday's session with gains, with only Energy -0.63%, Materials -0.53%, Communication Services -0.38% and Financials -0.27% falling behind. The performance gains were as follows: Information Technology +1.21%, Consumer Discretionary +0.32%, Industrials +0.29%, Consumer Staples +0.27%, Real Estate +0.24%, Utilities +0.13%, Health Care +0.09%.
For Commodities and Currency, the U.S. Dollar (NYSE: UUP) grew stronger against other global currencies on Friday, with its index increasing 0.6%. Gold (NYSE: GLD), on the other hand, dropped to a one-week low against the rising dollar, with spot gold falling 0.2% to $1,939.64 per ounce and futures settling unchanged at $1,947 per ounce. Crude oil prices also plunged lower as renewed coronavirus outbreaks threatened future demand. International benchmark Brent Crude (NYSE: BNO) declined 1.9% to $44.06 per barrel, while West Texas Intermediate (NYSE: USO) dipped 1.12% lower to settle at $42.34 per barrel.
As earning season is winding down, the biggest event in the week ahead is the Federal Reserve's annual symposium on monetary policy.