The three major U.S. equities indexes closed with solid gains Friday. Stocks stumbled in the morning, but the indexes traded in the green by noon. The final 90 minutes of trading probably looked like a good opportunity to buy the dip. The Dow Jones industrials closed up by 1.65%, the S&P 500 closed 2.43% higher and the Nasdaq composite closed with a 3.13% gain. One common element to all three was a gain of nearly 7% in Apple’s share price following a strong earnings report Thursday afternoon.
Among S&P 500 stocks, winners outnumbered losers by about six to one in Friday trading. Ten of 11 sectors closed higher, led by technology (up 4.4%) and real estate (3.5%). The energy sector (down 0.4%) was the day’s only loser.
Crude oil settled at $86.82 on Friday and traded up about 0.5% in early on Monday at $87.27. The 10-year/two-year U.S. Treasury note spread ended the day at 0.63%, unchanged from Thursday’s settlement.
During the coming week, the ISM manufacturing and non-manufacturing indexes are due Tuesday and Thursday, respectively and the key non-farm payrolls report is due out on Friday. Economists currently expect the U.S. economy to have added 180,000 jobs in January, about 5% lower than the December total of 199,000. The dip in private payrolls is expected to be even sharper while the unemployment rate is expected to remain flat at 3.9%.
Here are the five S&P 500 stocks that closed with the biggest gains on Friday: Visa (10.6%), Mastercard (9.12%), Dexcom (7.79%), Discovery (7.57%) and Fidelity National (7.47%).
Friday’s biggest losers among S&P 500 stocks were Western Digital (down 7.3%), Synchrony (6.75%), VF (6.52%), Caterpillar (5.19%) and Celanese (4.3%).
At around 7:00 a.m. ET Friday morning, S&P 500 futures traded down about 0.2%, the Nasdaq was up about 0.4% and the Dow 0.5% lower.
The leading gainer among S&P 500 stocks in Monday’s premarket trading was Netflix Inc. (NASDAQ: NFLX), up by around 2.7%, at $394.89 in a 52-week range of $351.46 to $700.99. Citigroup raised its rating on the stock Monday morning from Neutral to Buy while lowering the price target from $595 to $450.
ResMed Inc. (NYSE: RMD) traded up about 2.8% to $222.00, in a 52-week range of $179.37 to $301.34. The company’s quarterly earnings reported last Friday were disappointing, and shares fell by nearly 4%. Some investors were buying the dip Monday morning.
Arista Networks Inc. (NYSE: ANET) traded up about 2.4% before markets opened Monday, at $123.05 in a 52-week range of $65.52 to $148.57. The company had no specific news.
Beyond Meat Inc. (NASDAQ: BYND) traded up by about 4.2% to $58.93, in a 52-week range of $53.10 to $183.75. The low was posted on Friday. Barclays raised its rating on the stock from Underweight to Overweight and raised the price target from $70 to $80.
EOG Resources Inc. (NYSE: EOG) traded up 1.5% to $111.35, in a 52-week range of $50.08 to $111.28. Truist raised its Hold rating on the stock to Buy and boosted its price target from $111 to $135.
Stocks trading lower in Monday’s premarket session include L3Harris Technologies Inc. (NYSE: LHX), which was down 3.5% to $211.00, in a 52-week range of $172.15 to $246.08. The defense contractor reported better than expected quarterly results Monday morning but issued downside guidance on fiscal year profits and sales.
Pinnacle West Capital Corp. (NYSE: PNW) traded down 1.33%, at $69.90 in a 52-week range of $62.78 to $88.54. The company had no specific news.
Regions Financial Corp. (NYSE: RF) traded down by 1.52% in Monday’s premarket, at $22.75 in a 52-week range of $16.94 to $25.53. The company had no specific news.
Goldman Sachs Group Inc. (NYSE: GS) traded down by nearly 1% in Monday’s premarket session to $342.92. The 52-week trading range is $272.00 to $426.16. The bank’s stock was downgraded from Buy to Hold at Odeon last Friday.
Interpublic Group of Companies Inc. (NYSE: IPG) traded down by about 1.7% Monday morning, at $34.60 in a 52-week range of $23.96 to $39.35. BofA Securities downgraded the ad agency’s stock last week from Neutral to Underperform with a price target of $32.
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