US stocks closed a half-day on Friday at a record high, even without the help of oil prices.
Having already posted record highs at the opening of the shortened session and with the Dow Jones Industrial Average, S&P500 and S&P 600 all extending those highs into the close at record highs, there was a sense that the tickers would have done even better had it been a full session. Markets closed early on account of Thursday’s Thanksgiving holiday. Full day trading resumes on Monday.
But with volumes low across the board, some unlikely stocks ended up leading the tickers in their ascent.
The Dow closed up 0.4% at 19,152.14, its record high. Even the Nasdaq Composite ended on its record high, closing up 0.3% at 5398.92.
The market bellwether S&P 500 ended up 0.4% at 2213.35 – its highest level for the session and a fresh record high. Leading the charge was First Solar Inc (NASDAQ:FSLR), up 2.8% at $30.60. That despite being downgraded by broker Macquarie from an “outperform” rating to a “neutral” rating in a note issued to investors on Wednesday. They presently have a $29.66 price objective on the solar cell manufacturer’s stock, up from their previous price objective of $29.40. Volumes were 2.3mln shares versus an average daily of 5.3mln.
On Wednesday, the company issued impressive third quarter results.
The S&P Midcap 400 closed up 0.3% at 1640.81 – just an integer shy of its fresh record high of 1640.82. The top riser was Livanova Plc (NASDAQ:LIVN) up 3.3% to $45.49. Volumes were just 378,000 versus an average daily of 606,000.
The S&P Smallcap 600 closed up 0.4% at 825.28 – its record high. The leader was Gulf Island Fab (NASDAQ:GIFI) up 6.6% at $11.35. Volumes were less than a quarter of the daily count – and that on a half-day’s trading – at 8,000 versuss 44,000.
The wider small-cap Russell 2000 closed up 0.4% at 1347.20 – again a record high – and led by Insteel Industries (NASDAQ:IIIN) up 16.2% to $42.51.
But here the volumes weer more than sizeable. A whopping 1.7mln shares traded whereas the average for a full session is 345,000. The stock replaces Littelfuse (NASDAQ:LFUS) in the S&P Smallcap 600 on Monday Nov. 28.
Oil prices offered no help to the rally. The WTI ended down 4.2% at $45.96 as investors grew weary of prospects for a firm deal from OPEC next week to cut supply and boost oil prices, two years in recession.
Early trading
US stocks marched to fresh record highs at the start of trading on Friday as the “Trump trade” rally continued in the wake of the election earlier this month of Donald Trump to become the next US President.
In a shortened session – the market will close at 1300 ET (1800 GMT) in the wake of Thursday’s Thanksgiving holiday – investors got their trades in early. Trump has promised business-friendly policies.
The S&P 500 market bellwether was up 0.2% at 2,209 having marked a fresh record high of 2,210.08 earlier. The Dow Jones Industrial Average was up 0.3% at 19,131. Earlier it hit a record high of 19,146.22.
The S&P Midcap 400 was up 0.2% at 1,639, having earlier marked a fresh record at 1,639.74 while the S&P Smallcap 600 was up 0.1% to 822. It earlier marked a record high of 822.74.
The Nasdaq Composite, which started the session on the backfoot having ended lower on Wednesday, was up 0.1% at 5,385. It too marked an intraday record high of 5,389.50.
On the S&P500 the top gainer was AdvanSix Inc (NYSE:ASIX), up 1.9% to $20.14 on technical factors, while the second-biggest climber was retailer Michael Kors Holdings Ltd (NYSE:KORS) up 1.5% to $49.33 as Black Friday deals gave the retail sector a boost.
Four days back Kors also posted better than expected second-quarter earnings.
Leading the S&P 400 was Livanova Plc (NASDAQ:LIVN) up 2.23% to $45.00, while S&P 600 topper was retailer Movado Group Inc (NYSE:MOV) up 4.8% to $29.75.
But capping gains for the bourse was the weaker oil price. The WTI was down 1.6% to $47.20 after investors grew jittery ahead of next week’s watershed OPEC summit where plans to hammer out the extent of supply cuts will lead to a policy. Oil prices have experienced a two-year price recession.
Pre-Open
US stocks are expected to mark fresh record highs almost as soon as they open, if not at the opening itself on Friday as traders return from the Thanksgiving Day holiday to build on Wednesday’s record high closes across most of the tickers.
But investors had best get their tickets in early - it will be a half-day trading, closing at 1300 ET (1800 GMT).
Wednesday was a thumping good day for the bourse, as all the key S&P indices – including mid-caps and small-caps - plus the Dow Jones Industrial Average managed to post intraday record highs or closing record highs. If the momentum carries on, both the Dow and S&P 500 market bellwether will post record highs from the start of trading.
Only the tech-heavy Nasdaq Composite felt left out on Wednesday. The ticker, which marked a record high 5385.77 at the close on Tuesday, spent the entire Wednesday session in negative territory although it still closed just 5 points off the record.
But whether that means investors pick up a Black Friday bargain or two is another matter. Certainly retailers will be in the news as they are the ones most likely to benefit from a boost to sales starting today as the US tradition – which went global five years ago – to slash prices pre-Christmas gets under way.
Online retailer Amazon.com (NASDAQ:AMZN) was up 0.6% at $784.40 pre-market. Department store behemoth Macy’s Inc (NYSE:M) advanced 1.3% to $45.49 before the bell, Best Buy Inc (NYSE:BBY) was up 0.1% at $47.01, Dollar General Corp (NYSE:DG) was up 0.3% at $79.98, Gap (NYSE:GPS) up 0.3% to $26.25, and J C Penney Co (NYSE:JCP) up 1.2% at $9.94.
Retailers have already had a leg up from the White House victory of US President-elect Donald Trump. Retail stocks are expected to fare well under his administration with pro-business policies and reflationary plans to put more money into the pockets of middle America income earners.
But what may hold back record highs on Friday is the oil price. It slid on Friday as investors began to feel the usual pre-meeting apprehension set it ahead of next week’s OPEC supply cut meeting. Burnt from many past disappointments, investors know full well that attempts to drive up recessionary oil prices will be difficult.
Getting all major players to agree on a plan has been difficult in the past.
A significant cut in production should help taper supply and boost prices. The Saudis want it as they have recently been forced back to international debt raising, but being first among equals won’t be enough to sway OPEC interests.
An hour before the opening bell, the S&P 500 is indicated up 0.2%.