Breaking out to a new all-time high, the S&P 500 closed the week up 1% to 2,294, while the Dow Jones Industrial Average moved above 20,000 for the first time. The Ten-Year Treasury yield remained steady at 2.48%.
Earnings season was the focus for investors throughout the week. McDonald's (MCD), Johnson & Johnson (JNJ), 3M (MMM), Lockheed Martin (LMT), Rockwell Automation (ROK), Stryker (SYK), Boeing (BA), Celgene (CELG), Microsoft (MSFT), and Intel (INTC) are a handful of the companies that reported earnings higher than analyst's expectations.
Focusing in on specific reports, Lockheed Martin (LMT) had an interesting call after being in discussion with the new President surrounding the cost of the F-35 project. Analysts questioned LMT's management if it could maintain solid margins despite being pressured to lower costs for one of the company's most important programs. LMT pointed to already declining costs for the F-35 over the last few years and that discussions with the new administration were going well.
Microsoft (MSFT) posted a strong beat on earnings and sales, plus it gave an outlook that was better than what analysts estimated. CFO Amy Hood noted that MSFT saw strong demand for cloud products, Azure and Office 365, and management was executing well on long-term growth strategies. Azure, which makes up only a small percentage of total sales, grew 93% y/y.
Next week, investors will continue sorting through earnings and US economic data, which includes the monthly job report. Apple (AAPL), Exxon Mobil (XOM), and Facebook (FB) are among those reporting results.