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* Growth stocks will outperform value for the second week
* Honeywell profits if brokers increase price targets
* March PPI above expectations
* Dow with 0.89%, S&P 500 with 0.77%, Nasdaq with 0.51% (all new, adds weekly gains, market width, volume)
April 9 (Reuters) – The S&P 500 and the Dow rose to a record high on Friday, posting a third consecutive rise, partly due to a rise in stock growth, with a late increase in the rally before the quarterly earnings season next week.
Growth names have found their position over the past two weeks after outperforming stocks for most of the year. A ten-year decline in U.S. Treasury yields due to a 14-month high at the end of March has encouraged growth.
Data show that US producer prices rose more than expected in March, yielding the largest annual profit in 9-1 / 2 years.
Many investors are now expecting higher inflation, as the rollout of vaccines is helping the US economy recover from the closures, but equities are showing little concern as the Federal Reserve maintains that inflation could exceed its target.
“That’s why the whole week (Powell) was bickering, he made sure everyone understood that they were expecting a rise and that they were ready for it, it was no surprise,” said Ken Polcari, managing partner of Kace Capital Advisors in Jupiter, said. , Florida.
“That’s why the market is not deteriorating, because it has managed to combat the anxiety and prevent people from really panicking about it.”
The Dow Jones Industrial Average rose 297.03 points, or 0.89%, to 33,800.6, the S&P 500 rose 31.63 points, or 0.77%, to 4,128.8, and the Nasdaq Composite added 70.88 points, or 0.51%, to 13,900.19.
For the week, the S&P rose by 2.71%, the Dow by 1.96% and the Nasdaq by 3.12%.
The banks begin next quarter with earnings in the first quarter, with Goldman Sachs, JPMorgan and the wells Fargo would do on Wednesday. Analysts expect profits for S&P 500 businesses to show a 25% jump from a year earlier, according to Refinitiv IBES data. This would be the strongest performance for the quarter since 2018.
Megacap names like Apple, Amazon and Microsoft, which are in the growth index, have advanced to the S&P 500. Amazon shares rose 2.21% as warehouse workers in Alabama rejected an attempt to form a union has.
The Russell 1000 growth index, which consists largely of technology stocks, outperformed its counterpart, which consists mostly of cyclical stocks such as financial and energy names, more than a second week after the fall in longer-term Treasury returns. .
Bank of America’s weekly fund flow figures show that investors have been pumping more money into equities over the past five months than in the past twelve years.
A 3.24% Honeywell gain helped the Dow as Jefferies and JP Morgan raised their price targets on U.S. aero parts maker shares.
The US stock market was 8.69 billion shares compared to the average average of 11.71 billion for the full session over the past 20 trading days. (Posted by Chuck Mikolajczak; Edited by David Gregorio)