U.S. stocks weekly: All aboard?

Reuters

U.S. stocks weekly: All aboard?

Aug 23, 2024 at 8:42 pm GMT

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** S&P 500 .SPX climbs second straight week, adds 1.4% as Fed Chair Powell says "the time has come" to lower interest rates in Jackson Hole speech .N

** U.S. 10-Year Treasury yield US10YT=RR down to ~3.80%, on track for second-straight weekly decline

** SPX index, Nasdaq composite .IXIC, face hurdles, but close in on their Jul record highs

** This, as traders hold their "breadth," and amid recent Dow .DJI swings, turn to the charts

** By Fri, some worry, will there be a double top with Jackson Hole?

** Nearly every sector catches the train: Real Estate rides furthest, while just Energy is left at the station

** Real Estate .SPLRCR surges 3.6%. Sector hits nearly two-year high on Fri after Powell endorses rate cut

** Consumer Discretionary .SPLRCD up 2.1%. Homebuilders leap after Powell's rate cut signal. Ford F.N accelerates as co slows EV plan

** Industrials .SPLRCI up 1.8%. But Boeing BA.N falls after halting 777-9 test flights

** Consumer Staples .SPLRCS advance 1.6%. Target TGT.N jumps after annual profit forecast raise

** Financials .SPSY up 1.5%. Major banks jump and regional banks rally on Powell's rate cut comments

S&P 500 banks index .SPXBK lifts 2.3% and KBW regional banking index .KRX notches 5% gain on the week

On the flip side, Franklin Resources BEN.N tumbles after exec steps down amid SEC probe

** Tech .SPLRCT up 1.1%. Keysight Technologies KEYS.N top SPX winner, up nearly 15%, after electronic equipment maker's qtrly rev beat

Palo Alto Networks PANW.O ascends after cybersecurity firm's FY25 outlook exceeds estimates

Chipmaker Advanced Micro Devices AMD.O up on plans to acquire server maker ZT Systems for $4.9 bln

Semiconductor index .SOX up ~1%

** Energy .SPNY dips 0.5%. Oil firms fall earlier in week on easing Middle East tensions, weak China data. Though sector gains on Fri, helped by softer dollar O/R

** Meanwhile, AAII bulls "unusually high," while one global strategist downplays the rate cut signal

** SPX performance YTD:

Tech	28.4%
Comm Svcs	23.2%
Utils	18.6%
SPX	18.1%
Financials	17.8%
Staples	14.9%
Healthcare	13.9%
Industrials	13.3%
Materials	8.3%
Real Estate	8.1%
Energy	7.6%
Discretionary	6.0%