Dow 20,000: Just Missed
The Dow Jones Industrial Average came its closest to the 20,000 mark on Friday and rose about 64.51 points to close at 19,963.
Nike Inc (NYSE:NKE), Goldman Sachs Group Inc (NYSE:GS), and Walt Disney Co (NYSE:DIS) were the big movers in the Dow Jones Index and helped DJIA come within a whisker of reaching the 20,000 level.
Nike gained 1.6% and closed at $53.91, while Goldman Sachs and Disney both posted gains of about 1.5% on Friday.
DJIA was held back by the big losers like Verizon Communications Inc. (NYSE:VZ) and Wal-Mart Stores, Inc. (NYSE:WMT), which went down by 2.5% and 1.4% respectively.
The S&P 500 Index and NASDAQ Composite closed at all-time highs, buoyed by the technology stocks.
The S&P 500 gained 7.98 points to end at 2,276.98. Technology was the leading sector on Friday. The NASDAQ Composite also hit a closing high, rising by 33.12 points to close at 5,521.06.
The markets also got a boost from the good news on the jobs front. As per the data from the Bureau of Labor Statistics, the U.S. economy added 156,000 jobs in December. Although the job growth slowed, the wages posted strong growth and points to higher economic growth in future. (Source: “The Employment Situation — December 2016,” Bureau of Labor Statistics, January 6, 2017.)
Walt Disney Gains
Walt Disney Co (NYSE:DIS) gained about 1.5% and closed at $108.98.
RBC Capital Markets, LLC upgraded its rating to “Outperform” from “Sector Perform” on DIS stock. The stock has been gaining after the grand success of its movies like Moana and Rogue One: A Star Wars Story this year. Earlier in the week, Evercore had rated Disney stock as the top pick for the year 2017. As the economic growth accelerates and the tax reform plans of Donald Trump are introduced, Disney stock is expected to benefit from these developments.
There are great expectations ahead in the year as analysts and investors look forward to the possibility of the media conglomerate making a bid for Netflix, Inc. (NASDAQ:NFLX). The bullish sentiment is likely to keep the stock buoyant in the coming days.
Alphabet Stock Rides High
Alphabet Inc (NASDAQ:GOOG), also known as Google, stock rose 1.5% and closed at $825.21 in the last trading session.
Credit Suisse named Google as one of its top two picks in consumer internet stocks. The firm is bullish on the strong potential of YouTube and the company’s cloud computing business. Earlier in the week, Goldman Sachs had forecast that Internet stocks like Alphabet will outperform the broader market in 2017.
Google also showed off its improved self-driving system in a “Chrysler Pacifica” minivan during a Sunday preview, ahead of the Detroit Auto Show, and said that the technology was more reliable and affordable.
Stock Market News Today
The earnings season will begin this week and the big banks in focus will be JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC). The policies of the Trump administration are seen as favorable for the financial sector, which has already posted big gains. As the Fed goes ahead with more rate hikes this year on strong economic data, the bank stocks are likely to gain further.
Moreover, FANG stocks—Facebook Inc (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Netflix, and Google (Alphabet)—are likely to continue their upward march and post further gains before taking a pause. Bullish reports from analysts are likely to keep these stocks in the green for a while as the broader market looks forward to the earnings for future direction.