Dow, S&P 500 Close at Record Highs as Traders Parse Macro Data

The Dow Jones Industrial Average and the S&P 500 closed at their respective all-time high levels Thursday, as investors assessed a surprise upward revision to fourth-quarter economic growth, along with other macro data.

The Dow and the S&P 500 rose 0.1% each to 39,807.4 and 5,254.4, respectively, surpassing their previous closing records. The Nasdaq Composite fell 0.1% to 16,379.5. Energy led sector gainers while communication services, consumer discretionary, and technology closed lower.

Stock markets will be closed Friday in observance of the Good Friday holiday.

For the week through Thursday, the Dow and the S&P 500 gained 0.8% and 0.4% each, respectively. The Nasdaq lost 0.3%.

In economic news, US real gross domestic product in the December quarter increased at a 3.4% annualized rate, up from a 3.2% gain projected previously, according to a third and final estimate from the Bureau of Economic Analysis. Activity was expected to be unrevised, according to the consensus compiled by Bloomberg. In the third quarter, real GDP rose 4.9%.

"There is plenty to like in the upward revision to (fourth-quarter) US real GDP growth as stronger consumer spending and slower inventory build pave the way more favorably for growth early this year," Oxford Economics said in a note.

The US two-year yield rose 5.8 basis points to 4.63% Thursday, while the 10-year rate added one basis point to 4.21%.

US consumer sentiment increased in March, while inflation expectations edged lower, according to the University of Michigan's Surveys of Consumers. Sentiment was essentially unchanged throughout the first quarter, reflecting consumers' perception that the economy has been "holding steady in its current state," Surveys of Consumers Director Joanne Hsu said.

Pending home sales in the US rose more than projected in February, aided by a sharp gain in the Midwest, the National Association of Realtors said.

"While modest sales growth might not stir excitement, it shows slow and steady progress from the lows of late last year," NAR Chief Economist Lawrence Yun said. "Ongoing job gains are clearly increasing demand, along with more inventory."

Manufacturing activity in the US Midwest region slumped further into contraction territory in March amid steep declines in new orders and production, according to data from the Federal Reserve Bank of Kansas City.

West Texas Intermediate crude oil increased 2% to $83.01 per barrel Thursday.

In company news, Walgreens Boots Alliance WBA posted stronger-than-expected fiscal second-quarter revenue but lowered the high end of its full-year earnings outlook. The drug-store operator's shares rose 3.2%, the top performer on the Nasdaq and among the best on the S&P 500.

Tesla TSLA shares fell 2.3%, among the steepest decliners on the Nasdaq. Deutsche Bank lowered its Tesla delivery estimates for the second time in less than three weeks, citing weaker-than-expected sales in China and the electric vehicle maker's plan to cut production in the region.

Gold advanced 1.4% to $2,242.60 per troy ounce, while silver rose 1% to $25.01 per ounce.