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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 8, 2021. REUTERS/Brendan McDermid

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  • Johnson & Johnson gains on plan to split into two companies
  • Consumer sentiment hits 10-year low
  • Tesla slides as Musk sells more shares
  • Indexes up: Dow 0.45%, S&P 0.66%, Nasdaq 0.90%

NEW YORK, Nov 12 (Reuters) – Wall Street gained on Friday with market-leading growth stocks helping the indexes resume their climb as investors shrugged off disappointing economic data.

While the three major U.S. stock indexes were solidly higher, they remained on course to close below last Friday’s close, which would end a streak of five consecutive weekly advances.

Chips (.SOX) were outperforming the broader market, and investors were favoring growth (.IGX) over value (.IVX), with megacap tech stocks, led by Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O) doing the heavy lifting.

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“The equity market continues to forge higher on the heels of better-than-expected earnings, and that provides a basis for a risk-on bias,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.

“The market might be a little extended and it might be due for a pause, but that’s part of the ebb and flow of an upwardly trending market,” Sandven added.

“The next catalyst will be holiday spending and we’ll get a better read on that as we approach the Thanksgiving holiday and the remainder of the year.”

The University of Michigan’s preliminary consumer sentiment data for November surprised consensus by dropping to a 10-year low, and a Labor Department report showed job openings barely budged from record highs even as workers are quitting in record numbers.

The souring mood of the consumer could be worrisome to retailers as the important holiday shopping season draws near, and is likely to draw intensified scrutiny to upcoming retail earnings reports.

Walmart Inc (WMT.N), Target Corp (TGT.N), Home Depot Inc (HD.N), and Macy’s Inc (M.N) are among high profile retailers expected to report next week.

Retail results will herald the last days of what was a largely upbeat third-quarter earnings season. As of Friday, 459 of the companies in the S&P 500 have reported. Of those, 80% delivered consensus-beating earnings, according to Refinitiv.

The Dow Jones Industrial Average (.DJI) rose 160.78 points, or 0.45%, to 36,082.01; the S&P 500 (.SPX) gained 30.62 points, or 0.66%, at 4,679.89; and the Nasdaq Composite (.IXIC) added 140.70 points, or 0.9%, at 15,844.98.

Among the 11 major sectors of the S&P 500, communications services (.SPLRCL) led the gainers, while energy (.SPNY) suffered the largest percentage loss.

Shares of Johnson & Johnson (JNJ.N) gained 1.3% on news that the healthcare giant will split into two companies, dividing its consumer health care segments from its pharmaceuticals/medical devices business. read more

Tesla Inc (TSLA.O) dropped 3.6% on news that Chief Executive Elon Musk has sold an additional $700 million in stock in the next chapter of a saga that began with Musk’s infamous Twitter poll on whether he should offload shares in the company he founded. read more

Rival electric automaker Rivian Automotive Inc (RIVN.O) advanced 3.3%, on track for its third consecutive gain in its third day as a publicly traded company.

U.S.-listed shares of Alibaba Group Holding slipped 1.1% after the e-commerce giant reported its slowest-ever Singles Day sales, following months of Beijing’s escalating crackdown on Chinese tech firms. read more

Advancing issues outnumbered decliners on the NYSE by a 1.33-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored advancers.

The S&P 500 posted 32 new 52-week highs and one new low; the Nasdaq Composite recorded 114 new highs and 81 new lows.

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Reporting by Stephen Culp; Additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; Editing by Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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