US markets finished the week strongly on the back of great economic data. The Dow Jones added 0.7% and the S&P 500 1.1%, but it was the Nasdaq leading the way, up 1.4% for the session.
The strength was driven by better-than-expected economic data, beginning with new home sales that were 200k ahead of expectations, hitting 1.02 million in March.
Similarly, leading PMI indicators were nearing record levels, the manufacturing PMI printing at 60.6 and services 63.1.
The economic data is clearing feeding into the market, with quarterly earnings season thus far seeing earnings reported at an average of 23% above expectations.
Featured video: Portfolio construction roundtable
Silicon Valley Bank powers ahead
Friday’s winner was SVB Financial Group (NASDAQ: SIVB), known as the Silicon Valley Bank, which grew assets by 90% year-over-year and recorded a near quadrupling of profit to US$532 million.
This came as its venture capital and private equity-backed borrowers continue to power ahead in the pandemic economy. SVB stock finished the day 8.7% higher.
American Express struggling
On the other side, American Express (NYSE: AXP) dragged the Dow lower, shedding 1.9%, after highlighting it will need travel and associated spending to return to at least 70% of previous levels in order to reach its targeted 9-10% revenue growth this year.
Market movers
Here’s how other popular US stocks closed out the week on Friday.
- Twitter (NYSE: TWTR) up 4.2%
- NVIDIA (NASDAQ: NVDA) up 2.8%
- Goldman Sachs NYSE: GS) up 2.6%
- Apple (NASDAQ: AAPL) up 1.8%
- Netflix (NASDAQ: NFLX) down 0.6%
- Intel (NASDAQ: INTC) down 5.3%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to edge higher when the market opens on Monday. For all the latest, check out Rask Media’s ASX 200 morning report.