Dow, S&P, transports hit record in winning week

The Dow Jones Industrial Average and the S&P 500 rallied to record highs Friday as shares benefiting most from a reopening of the economy outperformed.

The Dow climbed 452 points, or 1.39%, while the S&P 500 advanced 1.66%. Both hitting record records, along with the Dow Transportation Average. The Nasdaq Composite gained 1.24% and finished 6.79% below its all-time high.

Tesla and Discovery kept a lid on gains for the tech-heavy composite.

In stocks, Dow components JPMorgan Chase & Co. and Goldman Sachs Group Inc. were among the leaders after the Federal Reserve said banks could begin issuing share buybacks and raising dividends on June 30 so long as they pass their annual stress test. The group also benefitted as the 10-year yield’s 4.4-basis point rise to 1.658% caused the yield curve to steepen.

FED TO LIFT BANK RESTRICTIONS ON DIVIDENDS, BUYBACKS BY JUNE

American Airlines Group Inc. prepaid a $550 million loan that was granted as part of the CARES Act, which in part extended aid to U.S. airlines amid the COVID-19 pandemic. United Airlines Holdings Inc., meanwhile, added flights to coastal vacation destinations starting Memorial Day weekend and announced plans to resume travel to some overseas destinations.

Cruise operators cannot restart U.S. voyages until Nov. 1, the Centers for Disease Control and Prevention said on Wednesday. An industry group had been urging for voyages to restart in early July.

Elsewhere, shares of Chinese tech companies bounced back from the steep losses suffered Thursday when the U.S. Securities and Exchange Commission began rolling out new measures that will boot foreign companies off American stock exchanges if they do not comply with audit standards.

In other news, LB Brands Inc. raised its earnings guidance for the current quarter, citing a faster than expected loosening of COVID-19 restrictions and recent government stimulus for improved customer demand.

And ThredUp celebrating a successful initial public offering rising over 42% its Nasdaq Composite debut.

In commodities, West Texas Intermediate crude oil jumped $2.41 to $60.97 per barrel and gold added $7.30 to $1,732.20 per ounce.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Overseas markets were higher across the board.

Britain’s FTSE 100 paced the advance in Europe, trading up 0.99%, while Germany’s DAX 30 and France’s CAC 40 climbed 0.87% and 0.61%, respectively.

In Asia, China’s Shanghai Composite index rose 1.63%, Hong Kong’s Hang Seng index advanced 1.57% and Japan’s Nikkei 225 added 1.56%.