Last week, the S&P 500 index rose for a third consecutive week as the first reading of Q4 economic growth came in stronger than expected and some earnings topped estimates.
The index continued to reach new closing highs each day through Thursday, when it closed at 4,894.16. It set a fresh intraday high on Friday at 4,906.69 but ended just below Thursday’s record close.
The market benchmark is now up 2.5% for the month and year-to-date.
US real gross domestic product rose at an annual rate of 3.3% in Q4, according to an advance estimate by the Bureau of Economic Analysis. The consensus was for a 2% gain in a survey compiled by Bloomberg. In the third quarter, real GDP grew 4.9%.
The GDP report came as a number of quarterly earnings reports have surpassed expectations. Companies that posted stronger-than-expected financial results this week included Visa, IBM, Johnson & Johnson and American Airlines.
The energy sector had the largest percentage increase of the week, jumping 5.1%, followed by a 4.5% gain in communication services and a 1.9% rise in financials. Other gainers included technology, industrials, consumer staples, utilities and materials.
However, three sectors edged lower on the week: consumer discretionary slipped 1.4%, real estate shed 0.5% and health care ticked down 0.2%.
This week’s earnings calendar features companies including Microsoft, Alphabet, Mastercard, Boeing, Apple, Amazon.com, Meta Platforms, Exxon Mobil and Chevron.
The focus of this week’s economic data will be January’s employment figures, with ADP’s monthly employment report scheduled for Wednesday and the US monthly nonfarm payrolls and unemployment rate due on Friday.
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