S&P 500 and Dow hit new records, Disney shares rise after earnings beat

S&P 500 and Dow hit new records, Disney shares rise after earnings beat

Trader on the floor of the New York Stock Exchange.

Source: NYSE

The S&P 500 and Dow Jones Industrial Average hit fresh all-time highs on Friday as both indexes looked to cap off a positive week on a high note.

The Dow, S&P 500 and Nasdaq Composite all traded within 0.15% of their respective flatlines. The S&P 500 and Dow hit fresh intraday records in the minutes following the opening bell before paring their gains.

Shares of Disney jumped nearly 2% after it reported blowout fiscal third-quarter earnings, helping pushing the Dow to a new record. The media giant crushed Wall Street expectations on Disney+ subscriber growth and overall revenue and earnings.

Among the S&P sectors, consumer staples and utilities outperformed as Tyson Foods added 2.7% and FirstEnergy rose 1%. Energy and industrials again underperformed with Hess down 1.2% and United Rentals retreating 2%. Ebay shares added 5.3%.

The blue-chip Dow and the S&P 500 are on track to close out a winning week after gaining 0.8% and 0.6%, respectively, through Thursday. The tech-heavy Nasdaq Composite underperformed this week, down 0.1%.

“As we look to close the week, the SPX continues to grind higher amid mixed economic data and a lack of consensus among Fed speakers as to when to begin tapering,” wrote JPMorgan’s Andrew Tyler. “The bull case remains intact despite factor/sector leadership remaining inconsistent.”

Investors digested mixed economic data.

The University of Michigan’s sentiment read for August printed at just 70.2, the weakest since December 2011. BMO Capital Markets strategist Ian Lyngen said that the low reading reflects not only higher prices, but also the uptick in the delta variant case count.

The university’s report said, “Consumers have correctly reasoned that the economy’s performance will be diminished over the next several months, but the extraordinary surge in negative economic assessments also reflects an emotional response, mainly from dashed hopes that the pandemic would soon end.”

On Thursday, the Labor Department said weekly jobless claims came in at 375,000 last week, matching estimates and declining for a third straight week. Meanwhile, the producer price index, excluding volatile food, trade services and energy components, rose 0.9% last month versus a forecast for a 0.5% gain.

“The hot PPI/home price figures took some of the sheen off the Wed CPI-induced ‘inflation has peaked party’ and this spurred very modest profit taking in cyclical groups following two days of outperformance,” Adam Crisafulli, founder of Vital Knowledge, said in a note.

Stock picks and investing trends from CNBC Pro:

Stocks are rising to records on the back of a stellar earnings season.

Year-over-year earnings growth is expected to be 92.9%, according to Refinitiv. So far about 90% of the S&P 500 companies have handed in their quarterly report, and about 88% of them beat earnings estimates from Wall Street analysts, according to Refinitiv.

Airbnb shares fell 1.1% after the travel company issued a warning about volatility due to the Covid delta variant.

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