The S&P 500 and Nasdaq rattled off record closes left and right this week
The S&P 500 Index (SPX) and Nasdaq Composite Index's (IXIC) record-setting run highlighted most of the week, with both indexes notching their seventh consecutive wins on Wednesday -- the former's longest streak since October. Thursday brought a sharp downturn, though both benchmarks still managed to notch more record highs in the morning, as investors rotated away from tech following cooler-than-expected consumer price index (CPI) data.
The breather proved to be short-lived, however, as stocks turned higher to end the week amid a flood of bank earnings and a slightly hotter-than-expected producer price index (PPI) reading. The Dow Jones Industrial Average (DJI), though starting off the week slow with a pair of daily losses, clocked an all-time high of its own during Friday's session, and is poised to conquer the 40,000 level for only the second time ever. For the week, all three indexes are headed for weekly gains, with the Nasdaq eyeing its sixth straight.
Analyst Notes This Week
Walmart (WMT) received yet another "buy" rating this week, as it continued its extended string of record highs, while Carvana (CVNA) received a lofty bull note as well. Some bear notes to watch: KeyCorp (KEY) stock brushed off a downgrade following last week's Federal Reserve bank stress test, while Jefferies slashed its rating on Darden Restaurants (DRI), and Redburn Atlantic called Spotify's revenue forecast "too ambitious."
What's New in Tech
Netflix (NFLX) will report earnings next week, and TD Cowen reiterated its "buy" rating ahead of the event, lifting its price target to $775 from $725. Also notable was news of MicroStrategy's (MSTR) 10-for-1 stock split, while ASML Holding (AMSL) looks like a potential stock split contender as well.
To the surprise of nobody, chip darling Nvidia (NVDA) remains the most popular stock amongst options traders, while artificial intelligence (AI) stocks SentinelOne (S) and SoundHound AI (SOUN) are sporting attractively priced options at the moment.
Next Week in the Market
A flood of bank earnings are due out next week, from heavyweights Bank of America (BAC), Goldman Sachs (GS), and Morgan Stanley (MS). There's also something for investors to unpack every day, including comments from several Fed members. Meanwhile, Schaeffer's Managing Editor Patrick Martin takes a stab at market seasonality ahead, while Schaeffer's Senior Quantitative Analyst Rocky White takes a look at what's in store for the S&P 500.