Dow, S&P 500 close at records as investors mull new earnings reports
- The S&P 500 and Dow Jones industrial average closed at record highs on Friday as investors digested more earnings reports.
- Disney posted third-quarter earnings that beat Wall Street's expectations.
- One CIO says he expects the second half of 2021 to see higher volatility.
The Dow Jones industrial average and S&P 500 closed at records on Friday as investors digested more quarterly financial reports amid what's been a strong earnings season overall.
Both indexes posted their second straight weekly gains amid signs of easing inflation and continued corporate profit growth.
Disney posted third-quarter earnings that beat Wall Street's expectations on Friday. The entertainment juggernaut saw robust sales and profit as its theme parks reopened in the US and lockdown restrictions elsewhere kept consumers attached to at-home streaming. Disney shares were up as much as 5%.
Here's where US indexes stood at the 4 p.m. ET market close on Friday:
- S&P 500: 4,468.00, up 0.16%
- Dow Jones Industrial Average: 35,515.38, up 0.04% (16 points)
- Nasdaq Composite: 14,822.90, up 0.04%
"The equity market has thus far endorsed a strong economic recovery story despite the rise of the Delta variant," David Donabedian, CIO of CIBC Private Wealth, said in a statement. "However, we don't expect the second half of the year to be as comfortable a market as the first half."
While we are still in a bull market, Donabedian said the rest of the year will be marked with higher volatility. And if the variant becomes worse, he said the public might start viewing COVID-19 as an economic crisis for the equity market rather than just a public health crisis.
SoFi Technologies fell as much as 15% after the fintech company released mixed second-quarter results and third-quarter revenue guidance that was below analyst estimates. This was its first earnings report as a public company.
Wish.com parent ContextLogic tumbled as much as 29% after the firm turned in second-quarter sales and a per-share loss that missed expectations, prompting a double-downgrade from JPMorgan.
Oil futures dipped after reports from the International Energy Agency and OPEC prompted worries over demand growth.
West Texas Intermediate crude was down as much as 1.9%, to $67.77 per barrel. Brent crude, oil's international benchmark, fell 1.8%, to $70 per barrel, at intraday lows.
Gold rose as much as 1.5%, to $1,779.34 per ounce.