The University of Michigan consumer sentiment index rises to its highest reading since January 2004
Housing starts fell 7% in February
Industrial production rose 1.1% in February
Dow Jones average up 73 at 24,947
S&P 500 up 5 at 2,752
Nasdaq Composite little changed
Losses were pared in the afternoon session but the main indexes still ended the day with healthy gains.
The Dow Jones, which was sitting upon a triple-digit gain earlier in the day, closed with a 73 point gain at 24,947. The broader-based S&P 500 was up 4.7 at 2,752 while the tech-heavy Nasdaq Composite was more or less unchanged at 7,482.
Clothing retailer The Buckle Inc (NYSE:BKE) was one of the better performers on the New York Stock Exchange, rising 6.9% to US$19.50 after publishing its fourth quarter results.
Net sales for the 14-week period to February 3 increased 0.4% to US$281.2 million from US$280.0 in the 13-weeks to January 28, 2017.
Comparable store net sales decreased 3.2% from a year earlier but online sales increased 4.0% to US$33.5mln.
In Canada, the S&P TSX Composite rose 41 to 15,711.
Mid-session: US consumer sentiment figures give the market a lift
US indexes were sharply higher in the wake of a surge in US consumer sentiment.
The Dow Jones average was 136 points to the good at 25,009 while the broader-based S&P 500 was 11 points firmer at 2,758.
The University of Michigan consumer sentiment index increased 2.3 points to 102 in early March, which was the highest reading since January 2004.
“The current economic conditions index increased 7.9pts to 122.8, the best reading on record, and likely a reaction to the higher take-home pay from the Tax Cuts and Jobs Act,” suggested Mickey Levy at Berenberg Bank.
“The report noted that 'favorable mentions of the tax reform legislation were offset by unfavorable references to the announced tariffs on steel and aluminum — each was spontaneously cited by one-in-five consumers'
According to Levy, the increased confidence, especially over the near term, points to a rebound in retail sales in March and the second quarter after the recent soft readings, “but the 1.4pt drop in the consumer expectations index to 88.6 indicates that some moderation in private consumption growth is likely later in the year after the near-term tax-induced boost.”
Meanwhile, housing starts fell 7% in February, which was way worse than the 2.7% decline expected by economists.
“However, we do not view the retreat as troublesome, as the decline occurred entirely in the multi-family sector and seemed to represent a dose of random volatility,” said Daiwa Capital Markets.
“Multi-family activity surged in January, which seemed like an aberration, and it returned to the underlying average in February,” Daiwa noted, adding that such moves are not uncommon in this sector.
Industrial production rose 1.1% in February, compared to expectations of a 0.4% rise.
Open: Stocks off to a firm start after a week of mayhem in Washington
Investors were finding breakfast at Tiffany's unpalatable on Friday, despite the upscale jeweler beating expectations with its fiscal fourth quarter earnings.
The results beat analysts' estimates, although the actual numbers themselves were not that sparkling.
The jewelery and accessories retailer said its net income in the fiscal fourth quarter that ended 31 January 2018 plunged 61%, to US$61.9mln, or 50 US cents a share, from US$157.8mln, or US$1.26 a share, in the year-earlier fourth quarter.
Earnings fell as Tiffany's provision for income taxes shot up to US$239.5mln in the latest fourth quarter from US$88.7mln in the year-earlier period due to the new US tax laws.
Excluding tax-related and other impairment charges, Tiffany (NYSE:TIF) said its earnings totaled US$208mln, or US$1.67 a share, which exceeded the consensus analyst earnings per share (EPS) estimate of US$1.64.
READ Tiffany reports forecast-beating results but cautions on pre-tax profit outlook in current fiscal year
The shares were down 65 at US$96.80 in early deals in a rising market.
The Dow Jones average was up 53 at 24,927 and the S&P 50 was up 7 at 2,755.
Also taking a shellacking after results was Hibbett Sports Inc (NASDAQ:HIBB), though it also beat analysts' expectations with its results.
The sportswear seller's performance in the three months to February 3 was a mixed bag, with like-for-like sales up 1.6% year-on-year and net income down to US$9.7mln from US$12.1mln the year before.
Earnings per share of 51 cents were down three cents on a year earlier but comfortably ahead of the consensus forecast of 44 cents.