On Friday, the Dow Jones Industrial Average opened at a record high, fueled by gains in chipmaker Intel. The other main indexes were also higher as investors ignored the weaker-than-expected U.S. economic growth data.
Intel’s shares rose 7 percent reaching their highest in nearly twenty years, after strong results offered showing that the company’s efforts to move away from the diminishing PC business was the right move.
AbbVie increased 6.8 percent following its report of upbeat profit on strong sales for its drug Humira.
The robust earnings swayed sentiments away from Friday’s downbeat data. Gross domestic product increased at a 2.6 percent annual rate, according to the Commerce Department in its advance fourth-quarter GDP report. Another set of data indicated that new orders for key U.S.-made capital goods drop unexpectedly last month.
In U.S. President Donald Trump address, at the World Economic Forum in Davos, he informed trading partners that Washington would no longer put up with unfair trade but made clear the U.S. was “open for business”.
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The markets had moved this week due to comments from top U.S. officials at Davos, including Treasury Secretary Steven Mnuchin’s welcoming of a weak dollar. But the dollar index slightly rebounded following Mnuchin telling CNBC that he did not intend to talk down the dollar.
“The dollar move has attracted lot of attention for the right reasons, it’s a pretty important driver right now for other assets,” said Peter Cecchini, chief market strategist in New York.
The Dow Jones industrial averag gained 44.41 points, or 0.17 percent, at 26,437.2 and the S&P 500 rose 8.83 points, or 0.31 percent, at 2,848.08. The Nasdaq Composite was up 31.05 points, or 0.42 percent, at 7,442.21.
Out of the 118 S&P 500 companies that have reported quarterly earnings through Thursday, 78.8 percent have surpassed expectations, compared to an average of 72 percent for the previous four quarters.
Advancing issues outnumbered decliners on the NYSE by 1,417 to 1,087. On the Nasdaq, 1,398 issues rose and 963 fell.