BUZZ-US stocks weekly: High hopes

U.S. stocks rose for the second consecutive week, with the S&P 500 up 0.3%, the Dow up 0.5%, and the Nasdaq nearly 1%. The Dow Jones Transportation Average marked a 10-day win streak. Energy and Technology sectors were notably strong, while defensive plays were less optimistic. The U.S. 10-Year Treasury yield rose to 4.14%. Notable stock movements included Microchip's 23% surge and Salesforce's rise due to its AI platform. The Healthcare sector fell 2.7%, and Utilities dropped 4.5%.

S&P 500 (.SPX) rises 2nd-straight week, adds 0.3% as Fed rate-cut expectations stay elevated (.N)

Dow (.DJI) adds 0.5%, while Nasdaq Composite (.IXIC) lifts nearly 1% Indeed, Nasdaq Composite has been blazing the trail back up By mid-week, S&P 500 comes within striking distance of its record highs, but push above Oct 28 record close on Fri fails to hold Of note, Dow Jones Transportation Average (.DJT) now on 10-day win streak, longest since 11-day run of gains that ended in Aug 2020 Growth vs Momentum: The race may come down to the wire U.S. 10-Year Treasury yield (US10YT=RR) rises to around 4.14%, snapping two straight weeks of declines. Nevertheless, the yield is still a coiled spring

Majority of sectors enthused: Energy and Technology most upbeat, while defensive plays pessimistic

Energy (.SPNY) up 1.4%. Group tracks oil prices higher after Russia says Ukraine peace talks fail to reach breakthrough (O/R) Tech (.SPLRCT) up 1.4%. Microchip (MCHP.O) surges 23% on week after improved fiscal third-qtr outlook Chip design software maker Synopsys (SNPS.O) gains after Nvidia (NVDA.O) takes $2 bln stake as AI deal spree accelerates

Semiconductor index (.SOX) leaps ~4% Salesforce (CRM.N) climbs after raised annual outlook as its AI platform Agentforce gains traction

Communication Services (.SPLRCL) up 0.8%. Meta Platforms (META.O) gains on report of up to 30% likely budget cut to its Metaverse initiative Warner Bros Discovery (WBD.O) advances as Netflix (NFLX.O) to buy WBD’s TV and film studios and streaming unit, though presumed front-runner Paramount Skydance (PSKY.O) plunges as its bid eclipsed

Financials (.SPSY) gain 0.6%. JPM downgrades Fiserv (FISV.O) , PayPal (PYPL.O) ratings to ‘neutral.’ Still, FISV surges ~8%, while PYPL off ~1%

For the week, S&P 500 banks index (.SPXBK) rallies 2%, KBW regional banking index (.KRX) rises 2.4%

Industrials (.SPLRCI) firm 0.5%. Boeing (BA.N) rises on Tues after CFO says planemaker expects higher 737, 787 deliveries next year, then falls on Weds as FTC requires Spirit AeroSystems (SPR.N) asset sales for merger approval. BA ascends 7% on week

Consumer Staples (.SPLRCS) retreat 1.4%. But Dollar General (DG.N) jumps after annual profit forecast hike on resilient demand, and rival Dollar Tree (DLTR.O) up after raising its profit outlook on steady affordable essentials demand

Real Estate (.SPLRCR) sheds 1.5%. Alexandria Real Estate Equities (ARE.N) crumbles after REIT slashes qtrly dividend by 45% to strengthen balance sheet, preserve liquidity

Healthcare (.SPXHC) sags 2.7%. Vaccine makers including Moderna (MRNA.O) fall on Mon after US FDA memo links child deaths to COVID shots

Utilities (.SPLRCU) dive 4.5%. Exelon (EXC.O) extends after $900 mln convertible bond offering Meanwhile, individual investor bulls charge, bears retreat

SPX performance YTD:

Comm Svcs 34.9%

Tech 25.4%

Industrials 17.0%

SPX 16.8%

Utils 13.6%

Healthcare 11.1%

Financials 10.8%

Energy 6.3%

Discretionary 5.4%

Materials 4.7%

Staples 1.9%

Real Estate 1.0% (Lance Tupper and Terence Gabriel are Reuters market analysts. The views expressed are their own)