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* Growth stocks exceeded value for the second week
* Honeywell wins as brokerages raise price targets
* March PPI exceeds expectations
* Dow up 0.89%, S&P 500 up 0.77%, Nasdaq up 0.51% (new all-round, add weekly gains, market width, volume)
April 9 (Reuters) – The S&P 500 and Dow rose to record highs on Friday, posting a third consecutive weekly rise in part from a rise in growth stocks, with a rally rising late in the day ahead of the quarterly profit season next week .
Growth names have found their place in the last two weeks after being overtaken by stock stocks for most of the year. A 10-year withdrawal of US Treasury yields from a 14-month high at the end of March encouraged growth in buying.
Data show that US producer prices rose more than expected in March, bringing the highest annual gain in 9-1 / 2 years.
Many investors now expect higher inflation, as vaccine launches help the US economy recover from the deadlock, but stocks have shown little concern as the Federal Reserve has maintained it will allow inflation to exceed its target.
“That’s why the whole week (Powell) was buzzing, he made sure everyone understood that they were waiting for a peak and that they were ready for it, it wasn’t a surprise,” said Ken Polcari, managing partner at Kace Capital Advisors in Jupiter, Florida.
“This is why the market is not coming back, because it has managed to repel anxiety and prevent people from really panicking about it.”
The Dow Jones industrial average rose 297.03 points, or 0.89%, to 33,800.6, the S&P 500 gained 31.63 points, or 0.77%, to 4,128.8, and Nasdaq Composite added 70, 88 points, or 0.51%, to 13,900.19.
For the week, the S&P was up 2.71%, the Dow was up 1.96%, and the Nasdaq was up 3.12%.
Banks begin the first quarter earnings season next week, with Goldman Sachs, JPMorgan and Wells Fargo reporting on Wednesday. Analysts expect profits for the S&P 500 to show a 25% jump from a year earlier, according to IBES Refinitive data. This would be the strongest performance for the 2018 quarter.
Megacap names such as Apple, Amazon and Microsoft, which are on the growth index, advanced at the pace of the S&P 500. Amazon shares rose 2.21% as warehouse workers in Alabama rejected attempts to form a union.
The Russell 1000 growth index, made up largely of technology stocks, exceeded the value of its counterpart, made up largely of cyclical stocks, such as financial and energy names, for a second week after the withdrawal of older Treasury yields.
Bank of America’s weekly cash flow figures show that investors have pumped more money into stocks in the last five months than in the last 12 years.
A 3.24% gain in Honeywell helped lift the Dow, while Jefferies and JP Morgan raised their price targets on shares of the US aircraft parts maker.
The volume of US stock markets was 8.69 billion shares, compared to the average of 11.71 billion for the full session in the last 20 trading days. (Reporting by Chuck Mikolajczak; Editing by David Gregorio)