S&P 500 Closes at Record High as Bulls Pile In Ahead of Long Weekend

imageStock Markets6 hours ago (Feb 12, 2021 21:09)

© Reuters

By Yasin Ebrahim

Investing.com – The S&P 500 racked up gains into the close to end at a record high Friday, on a rebound in cyclicals like energy and financials from weakness a day earlier and gains in tech ahead of the three-day weekend in the U.S.   

The S&P 500 was up 0.49% to close at record 3,935.35. The Dow Jones Industrial Average rose 0.09%, or 27 points, while the Nasdaq Composite added 0.50%.

Energy clawed back some of its losses from a day earlier to remain on track to end the week in the green as oil prices jumped 2% despite some analysts reiterating expectations for oversupply pressure to weigh on energy prices.

“The IEA’s forecast confirms our assessment of the oil price this year – due to the oversupply we expect Brent to dip below $50 per barrel again in the second quarter, partly because we do not share the current demand euphoria in view of the additional restrictions and changes in consumer and travel behaviour,” Commerzbank (DE:CBKG) said.

Cabot Oil & Gas (NYSE:COG), Hess (NYSE:HES), and Halliburton Company (NYSE:HAL) were among the biggest gainers, with the latter closing up nearly 4%.

Financials also participated in the broader climb in cyclicals, with bank stocks in the ascendency led by a 2% gain Wells Fargo (NYSE:WFC) thanks to ongoing expectations for stronger stimulus-led recovery that has boosted U.S. bond yields.

The recent jump in bond yields, however, has stoked some investor concern about whether rising rates will siphon away investment dollars from stocks. But experts stress that it is too early as yields still remain well off their prior year highs.

“If you think about where the rates have been over the past four decades … They have been on a continuously downward trajectory and from an investor’s point of view if you’re looking to add something that can generate income into your portfolio, you don’t get a whole lot from that market [bonds] just yet,” Johan Grahn, Head of ETF Strategy at Allianz (DE:ALVG) Investment Management said in an interview with Investing.com.

The mostly positive session for cyclicals comes as the last wave of earning continue to trickle through.

Walt Disney (NYSE:DIS) reported a surprise profit as the fall in revenue from its theme parks and experiences business was not as bad as many had feared, while its subscriber business continued to strengthen. Its shares fell more than 1%.

Expedia (NASDAQ:EXPE) reported earnings and revenue that fell short of expectations as the pandemic drag on gross bookings continued.

In other news, casino stocks were in the spotlight after new guidance from the state of Nevada said it bars and restaurants would be able to 35% from Monday, sending Wynn Resorts (NASDAQ:WYNN), Caesars (NASDAQ:CZR) and MGM Resorts (NYSE:MGM) higher.

U.S. makers will be closed to observe President’s Day on Feb. 14.

S&P 500 Closes at Record High as Bulls Pile In Ahead of Long Weekend

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