A slow start for stocks turned into a fine finish Friday as investors took in a raft of economic data and cheered news that the government had once again avoided a shutdown.
Friday's economic calendar was full thanks to a handful of updates on the manufacturing sector and several Fed officials speaking throughout the day. Most notable was the Institute for Supply Management's Manufacturing Purchasing Managers Index (PMI), which fell 1.3% from January to February to land at 47.8%. This is the 16th straight month the index has been below the 50 level, which indicates contraction.
In addition to softening demand, "the production gauge slipped back into contraction territory after expanding in January, while the employment index contracted for the fifth straight month, pointing to a drop in manufacturing payrolls in February," says Jay Hawkins, senior economist at BMO Capital Markets. The economist thinks the manufacturing sector will continue to struggle until the Fed starts cutting interest rates.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Dell soars after earnings, dividend hike
In single-stock news, Dell (DELL) surged 31.5% after the PC maker reported earnings. In its fourth quarter, Dell reported higher-than-expected earnings of $2.20 per share on $22.3 billion in revenue. The company credited "strong AI-optimized server momentum" for its strong results, with orders up 40% from Q3 and Dell's backlog nearly doubling.
Moreover, Dell hiked its annual dividend by 20% to $1.78 per share.
"Dell in our view is uniquely positioned for the generative AI opportunity because it operates on 'both sides of the fence' between the PC market and the enterprise IT infrastructure market," says Argus Research analyst Jim Kelleher (Buy). For the current fiscal year, Kelleher expects "PC growth and favorable mix, enterprise recovery, and AI acceleration to drive full-year revenue recovery and margin expansion."
NYCB stock notches lowest close in 27 years
On the other hand, New York Community Bank (NYCB) tumbled 26% to $3.545 – its lowest close since January 1997 – following several concerning headlines. The regional bank said Thursday that Alessandro DiNello will replace Thomas Cangemi as CEO, effective immediately.
Separately, the company said in a regulatory filing that management "identified material weaknesses in the Company's internal controls related to internal loan review, resulting from ineffective oversight, risk assessment and monitoring activities." NYCB added that it will unveil a remediation plan to address these "material weaknesses" in an upcoming filing.
The embattled bank stock's woes began in late January when the company posted a surprise quarterly loss and slashed its dividend due to an unexpected surge in loan-loss reserves.
"The comments from the bank over the past month have been demonstrating they were struggling to meet the new reserve requirements mandated after the acquisition [of Signature Bank in March 2023]," says Brian Mulberry, client portfolio manager at Zacks Investment Management. "Because their balance sheet basically doubled, they crossed into a different threshold of reserve requirement and the CEO seemed unaware that outcome would be such a burden."
As for the main indexes, the Dow Jones Industrial Average rose 0.2% to 39,087, while the S&P 500 (+0.8% at 5,137) and the Nasdaq Composite (+1.1% at 16,274) notched new record closes.
Related content
- What To Know About Chrysler's Jeep Grand Cherokee Recall
- Veterans Turn Their Fight to the DEA: This Week in Cannabis
- Kiplinger's Earnings Calendar for This Week
-
6 Stunning Waterfront Homes for Sale Around the USFrom private peninsulas to lakes, bayous and beyond, Kiplinger's "Listed" series brings you another selection of dream homes for sale on the waterfront.
-
Six Reasons to Disinherit Someone and How to Do ItWhether you're navigating a second marriage, dealing with an estranged relative or leaving your assets to charity, there are reasons to disinherit someone. Here's how.
-
Should You Still Wait Until 70 to Claim Social Security?Delaying Social Security until age 70 will increase your benefits. But with shortages ahead, and talk of cuts, is there a case for claiming sooner?
-
Retirement Planning for Couples: How to Plan to Be So Happy TogetherPlanning for retirement as a couple is a team sport that takes open communication, thoughtful planning and a solid financial strategy.
-
Market Turmoil: What History Tells Us About Current VolatilityThis up-and-down uncertainty is nerve-racking, but a look back at previous downturns shows that the markets are resilient. Here's how to ride out the turmoil.
-
Stock Market Today: Stocks Surge to Close a Volatile WeekIt was another day with a week's worth of both news and price action, but it ended on a strongly positive note.
-
Home Insurance: How to Cut Costs Without Losing CoverageNatural disasters are causing home insurance premiums to soar, but don't risk dropping your coverage completely when there are ways to keep costs down.
-
Markets Roller Coaster: Resist the Urge to Make Big ChangesYou could do more harm than good if you react emotionally to volatility. Instead, consider tax-loss harvesting, Roth conversions and how to plan for next time.
-
Why Homeowners Insurance Has Gotten So Very ExpensiveThe home insurance industry is seeing more frequent and bigger claims because of weather, wildfires and other natural disasters.
-
Stock Market Today: Uncertainty Proliferates: Dow Loses 1,014 PointsWeaker-than-expected consumer inflation data wasn't enough to stabilize sentiment during another volatile day for financial markets.
