A historic day for Amazon.com — and some weak buying in the broader tech sector — pushed the stock market higher on Friday, capping another week of gains for all three major indexes.
After the online retailer reported better-than-expected earnings on Thursday night, Amazon (ticker: AMZN) gained $191.3 billion in market capitalization on Friday, the biggest one-day gain ever among U.S. companies, according to Dow Jones Market Data. The previous record was set on January 28 when Apple (AAPL) earned $181.3 billion.
Amazon’s gains supported the Nasdaq and S&P 500, as the movements of these indexes are weighted by the market capitalizations of their constituents. The Nasdaq gained 1.6% on Friday, while the S&P 500 advanced 0.5%. The Dow Jones Industrial Average, which does not include Amazon, fell 21 points.
Amazon’s market capitalization of $1.4 trillion was about 6% of the total Nasdaq market value before Friday. At market close, the market capitalization was approximately $1.6 trillion.
It comes a day after Meta Platforms (FB) recorded the largest one-day market capitalization loss ever for a US company. The earnings disaster caused the social media giant to lose $232 billion in value and send all three major indexes plummeting.
Still, the Dow Jones gained 1.1% on the week, while the S&P 500 rose 1.6% and the Nasdaq 2.4%. These indices are up for the second consecutive week.
Besides technology, January’s strong jobs report gave investors more data to weigh in on. January saw 467,000 jobs created, well above the 150,000 expected. The results were particularly surprising given Wednesday’s ADP report, which predicted a loss of 200,000 jobs, and chatter from the Biden administration suggesting it would be a weak release.
The positive report could mean that the Federal Reserve could raise interest rates by 50 basis points, or the equivalent of two hikes, in March, instead of the current expectation of 25 basis points.
The jobs report “cements 25 basis points in March and adds 50 basis points to the record,” wrote Ian Lyngen, head of US rates strategy at BMO.
The bond market seems to agree. The 2-year Treasury yield rose to 1.31% from 1.22% just before the jobs report, while the 10-year Treasury yield rose to 1.92% from 1.82 %.
Oil prices, too, are likely pointing to higher inflation as they continue their ever-higher march. U.S. West Texas Intermediate crude futures rose 2.2% to top $92 a barrel for the first time since 2014.
“Friday’s jobs report bolsters the Federal Reserve’s argument that the economy is strong enough to withstand tighter monetary policy this year,” wrote Julian Koski, chief investment officer at the management firm. of New Age Alpha assets.
down 0.2%. In Hong Kong, traders returned for the first time since Monday after the Lunar New Year holiday. the
Hang Seng Index
jumped 3.2%, the biggest post-holiday one-day gain in more than a decade.
Here are six stocks moving on Friday:
Social media actions
(PINS) jumped nearly 60% and 11.2%, respectively; Snap had fallen nearly 24% on Thursday with Pinterest down more than 10%. Shares, which rely heavily on publicity, were beaten by Meta results, but rebounded after posting their own earnings on Thursday night, which showed they weren’t struggling with the same issues.
(FB) fell 0.3%, following Thursday’s historic market cap loss.
(CLX) fell 14.5% after the cleaning products maker reported disappointing earnings and said margins would be squeezed by continued cost pressures. The company posted adjusted earnings of 66 cents per share, below estimates of 84 cents per share.
Unity Software (U) stock gained 17.3% after the company reported a loss of 5 cents per share, lower than the expected loss of 7 cents, on sales of $316 million, above expectations of $220 million.
Ford (F) stock fell 9.7% after the company reported earnings of 26 cents per share, missing estimates of 45 cents per share, on sales of $35.3 billion, falling short expectations of $35.5 billion.