The American S & P 500 last Friday broke the two-week string of losses and reached another record high.
Trading in shares in the US as a whole was calm on the eve of a long weekend. The volume of trading on the leading exchanges was minimal since the beginning of 2017.
The S & P 500 closed with an increase and reached the 20th record high this year, and for the whole week gained 1.4%, which was the strongest weekly gain since the end of April. Nasdaq Composite on Friday also closed at a record high.
US stock indexes are rising with the support of stronger than expected corporate reports for the first quarter, expectations of a gradual tightening of the monetary policy of the Fed and further signs of economic stabilization.
“The beginning of the year turned out to be successful, but now the question is whether this is calm before the storm,” said Allen Bond, portfolio manager at Jensen Quality Growth Fund.
As some analysts and fund managers say, although the shares appear expensive, and abroad there may be more successful opportunities, low volatility and a high level of confidence among investors suggest a further potential increase in the US stock market.
According to Bond, the latest macro data indicates a good, even strong economic growth. In combination with favorable corporate results, this inspires him with optimism about the further movement of the stock market.
Ndustrial Average on Friday lost 2.67 points, or less than 0.1%, to 21080.28 points. The S & P 500 added 0.75 points, or less than 0.1%, to 2,415.82 points, while the Nasdaq Composite rose by 4.94 points, or less than 0.1%, to 6,210.19 points.
Leaders of growth in the US on Friday were the operators of railways and trains. Shares of Kansas City Southern went up by 2.88 dollars, or 3.1%, to 95.95 dollars. Paper Norfolk Southern added 2.56 dollars, or 2.1%, to 122.33 dollars.
Signet Jewelers fell for the second consecutive day after the publication of results that were below expectations. Shares of the company fell 99 cents, or 2%, to 49.31 dollars, and for the whole last week lost 16%.
Last week, shares of utility and technology firms led the increase in the S & P 500. Both subindex in the S & P scored more than 2% in a week.
Papers of the utilities sector, which due to stable dividend payouts are often compared to bonds, also rose against the backdrop of lower inflation expectations.
The technological sector has increased by 20% since the beginning of the year. Investors willingly buy stocks that outstrip the overall stock market since the financial crisis.
Paper, which is part of the S & P 500 is attributed to the consumer sector, is also rising amid the growth of the technology sector. Shares of the company on Friday traded just below the level of $ 1000, closing at $ 2.40, or 0.2%, to $ 995.78.
Ten years ago, Amazon stock was worth $ 68. This dynamic indicates not only the dizzying growth of Amazon, but also the fact that fewer companies resort to fragmenting the shares to increase their number and reduce the price of one share.
Stronger than all in the last week, shares of oil and gas companies fell. July futures for WTI crude oil rose by 1.8% on Friday to $ 49.80 per barrel, but by the end of the week it fell by more than 1.7%.
Oil prices fell earlier this week due to disappointment with OPEC measures, which were not as strong as some investors had hoped.
Although OPEC members agreed to extend the agreement to cut production until March 2018, “the market expected stronger cutbacks and an extension of the arrangement for a longer period,” said Martin Enlund, an analyst at Nordea.
The subindex of oil and gas sector S & P 500 for last week fell by 2.1%.
The Stoxx Europe 600 index fell by 0.2% on Friday, and for the whole week it lost less than 0.1%.