US close: S&P 500, Dow set new records ahead of long weekend

(Sharecast News) - US stocks were little changed on Thursday but the S&P 500 still managed to notch another record close, capping off its best first-quarter run since 2019.

A shortened trading week and a flurry of key economic indicators kept investors from taking on too much risk during the session, with all three Wall Street benchmarks rangebound for most of the session.

Nevertheless, the S&P 500 still finished 0.11% higher at a new peak of 5,254.35. With markets closed on Friday for Good Friday, Thursday was the last trading session of the first quarter - a period which has seen the S&P 500 surge 10.79%.

"At 5,254, the index has risen 11% this year. The last time it beat this amount was the 13.1% return seen in the first quarter of 2019," said AJ Bell investment analyst Dan Coatsworth.

The Dow closed up 0.12% at 39,807.37 - also a new record closing high - finishing the quarter out with a gain of 5.55%; the Nasdaq slipped 0.12% to 16,379.46, but still registered a 10.93% increase since the start of the year.

Monetary policy in focus

A barrage of economic data was released on Thursday, including jobless claims, consumer confidence, pending home sales and GDP figures that all came in ahead of expectations.

Investors will get their chance to react to Friday's all-important PCE index for February when markets reopen on Monday. The Federal Reserve's preferred measure of inflation is forecast to show that annual price growth picked up to 2.5% last month, from 2.4% in January.

On Wednesday evening, Fed governor Chris Waller said that the central bank was in "no rush" to cut interest rates in light of stubborn inflation levels and stronger-than-expected labour-market data. Recent data "tells me that it is prudent to hold this rate at its current restrictive stance perhaps for longer than previously thought to help keep inflation on a sustainable trajectory toward 2%," he said.

"Investor sentiment has improved over the past six months thanks to growing expectations for central banks to cut interest rates. Investors have been happy to take greater risks, partly influenced by cash savings rates trending lower, which has driven more people to equities in search of better returns," Coatsworth said.

"This confidence has helped to drive up valuations but also raises the prospect that markets could find it harder to keep rising if inflation proves stickier than expected and we don't get the Fed's monetary policy pivot any time soon."

Economic data mostly better than forecast

Revisions to fourth-quarter GDP figures showed that the US economy grew at an annual rate of 3.4% at the end of 2023, up from an earlier estimate of 3.2%. Economists had expected no change from the initial reading.

Initial weekly jobless claims fell by 2,000 to 210,000 in the week ended 22 March, slightly better than the 215,00 expected by the market.

Pending home sales also beat forecasts, rising 1.6% in February after a revised 4.7% slump in January, slightly ahead of the 1.5% increase expected.

The University of Michigan consumer sentiment index rose to 79.4 in March, from 76.5 in February, and ahead of predictions for no change. This was the highest reading since July 2021.

However, the Chicago purchasing managers' index slipped further into negative territory (indicated by any reading below 50), falling to 41.4 in March from 44.0 a month earlier. The consensus estimate was 46.0.

Market movers

Home Depot fell 0.6% after revealing it is to acquire SRS, the specialty trade distributor that providers roofing materials and building supplies, for $18.25bn. The US home improvement retailer said SRS will accelerate its growth with the residential professional customer.

Retail pharmacy chain Walgreens Boots Alliance gained 3.2% after releasing second-quarter results that beat expectations, though the company cut the midpoint of its full-year earnings guidance due to a challenging retail environment.

Cinema chain AMC dropped 14.3% after the company announced a stock sale to improve liquidity following a soft first quarter at the box office.

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $21.69 3.19%

3M Co. (MMM) $106.13 1.42%

Walt Disney Co. (DIS) $122.36 1.14%

Verizon Communications Inc. (VZ) $41.96 1.01%

Intel Corp. (INTC) $44.17 0.91%

Chevron Corp. (CVX) $157.74 0.89%

Goldman Sachs Group Inc. (GS) $417.69 0.59%

Travelers Company Inc. (TRV) $230.12 0.57%

Boeing Co. (BA) $192.99 0.54%

Caterpillar Inc. (CAT) $366.43 0.49%

Dow Jones - Fallers

Apple Inc. (AAPL) $171.48 -1.06%

Walmart Inc. (WMT) $60.17 -0.91%

Amgen Inc. (AMGN) $284.32 -0.69%

Home Depot Inc. (HD) $383.51 -0.59%

Dow Chemical Co. (DOW) $57.95 -0.36%

Procter & Gamble Co. (PG) $162.25 -0.22%

Microsoft Corp. (MSFT) $420.72 -0.17%

Nike Inc. (NKE) $93.98 -0.16%

Salesforce.Com Inc. (CRM) $301.58 -0.07%

American Express Co. (AXP) $227.86 -0.03%

S&P 500 - Risers

Estee Lauder Co. Inc. (EL) $154.36 6.28%

Nektar Therapeutics (NKTR) $0.93 5.55%

Vornado Realty Trust (VNO) $28.76 4.69%

AES Corp. (AES) $17.93 3.94%

Hanesbrands Inc. (HBI) $5.80 3.57%

Boston Properties Inc. (BXP) $65.31 3.42%

Walgreens Boots Alliance, Inc. (WBA) $21.69 3.19%

Capital One Financial Corp. (COF) $149.18 3.03%

Phillips 66 Common Stock (PSX) $163.41 2.76%

Sl Green Realty Corp. (SLG) $55.13 2.59%

S&P 500 - Fallers

Carnival Corp. (CCL) $16.34 -4.94%

Jefferies Financial Group Inc. (JEF) $44.12 -4.40%

General Electric Co. (GE) $175.53 -2.55%

Norwegian Cruise Line Holdings Ltd (NCLH) $20.94 -1.92%

Meta Platforms Inc. (META) $485.58 -1.68%

Seagate Technology Plc (STX) $93.05 -1.62%

AutoZone Inc. (AZO) $3,157.03 -1.29%

CenturyLink Inc. (LUMN) $1.56 -1.27%

Agilent Technologies Inc. (A) $145.50 -1.26%

Booking Holdings Inc. (BKNG) $3,627.88 -1.24%

Nasdaq 100 - Risers

Walgreens Boots Alliance, Inc. (WBA) $21.69 3.19%

Qurate Retail Inc. (QRTEA) $1.23 2.50%

Analog Devices Inc. (ADI) $197.79 2.31%

J.B. Hunt Transport Services Inc. (JBHT) $199.25 2.07%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $522.88 1.82%

eBay Inc. (EBAY) $52.78 1.66%

Gen Digital Inc. (GEN) $22.40 1.36%

Take-Two Interactive Software Inc. (TTWO) $148.49 1.07%

Paychex Inc. (PAYX) $122.80 1.05%

Kraft Heinz Co. (KHC) $36.90 1.01%

Nasdaq 100 - Fallers

Tesla Inc (TSLA) $175.79 -2.25%

Meta Platforms Inc. (META) $485.58 -1.68%

Seagate Technology Plc (STX) $93.05 -1.62%

Biomarin Pharmaceutical Inc. (BMRN) $87.34 -1.43%

Booking Holdings Inc. (BKNG) $3,627.88 -1.24%

Micron Technology Inc. (MU) $117.89 -1.14%

Apple Inc. (AAPL) $171.48 -1.06%

Netflix Inc. (NFLX) $607.33 -1.01%

Charter Communications Inc. (CHTR) $290.63 -0.98%

Illumina Inc. (ILMN) $137.32 -0.98%