• Three main benchmarks achieve sixth straight weekly gain
• Weekly indexes up: Dow 0.96%, S&P 500 0.85%, Nasdaq 0.79%
• Netflix jumps on growth forecast
• American Express, SLB down following results
• Friday indexes up: Dow 0.09%, S&P 500 0.4%, Nasdaq 0.63%

Oct 18 (Reuters) - The Dow Jones Industrial Average and S&P 500 chalked up record closing highs on Friday, with the Nasdaq also in positive territory, as markets were boosted by an earnings-driven jump in Netflix shares and broader gains across technology stocks.

All three major Wall Street benchmarks also comfortably secured a sixth straight weekly gain, their longest weekly winning streaks since late 2023.

For the week, the S&P 500 gained 0.9%, the Nasdaq Composite advanced 0.8%, and the Dow Jones Industrial Average climbed 1%.

Shares of Netflix (NFLX.O) , opens new tab jumped 11.1% to a record closing high after the streaming giant topped Wall Street estimates for subscriber additions and said it expected continued growth through the end of the year.

Many of the so-called Magnificent Seven tech stocks, which have driven much of Wall Street's rally this year, rose.

Apple (AAPL.O) , opens new tab gained 1.2% after data showed a sharp increase in new iPhone sales in China, while chip heavyweight Nvidia (NVDA.O) , opens new tab advanced 0.8% after BofA Global Research hiked its price target on the stock.

Netflix's increase lifted the communication services sector (.SPLRCL) , opens new tab 0.9%, making it the largest gainer among the 11 S&P 500 sectors, while information technology (.SPLRCT) , opens new tab rose 0.5%.

"It's kind of the 'what's not to like' market," said David Waddell, chief executive of Waddell & Associates, citing positive economic data, disinflation and upbeat earnings and forecasts from corporate America.

On Friday, the S&P 500 (.SPX) , opens new tab rose 23.20 points, or 0.40%, to 5,864.67 points, while the Nasdaq Composite (.IXIC) , opens new tab advanced 115.94 points, or 0.63%, to 18,489.55. The Dow Jones Industrial Average (.DJI) , opens new tab gained 36.86 points, or 0.09%, at 43,275.91.

For the Dow, it was the fifth session in the last six that it had posted a record closing high. However, its gains on Friday were restrained by American Express (AXP.N) , opens new tab, which lost 3.1% after the credit card company's quarterly revenue missed estimates.

Financial companies have had a broadly positive earnings season so far. The S&P Banks index (.SPXBK) , opens new tab slipped 0.1% though, ending its string of wins at five.

The upbeat earnings of financial companies, and broadly positive economic data, have helped sustain the three main indexes' grind upwards in recent days.

However, stretched valuations - the S&P 500 is trading at nearly 22 times forward earnings - along with high expectations for corporate results and potential volatility around the Nov. 5 U.S. presidential election, could leave stocks vulnerable to a pullback.

David Waddell of Waddell & Associates noted though that strong corporate earnings could override any political considerations or concerns about overdone valuations.

"We have gotten all we're going to get from multiple expansion, so I think the path forward is completely reliant on earnings," he said. "We're priced for pretty-darn-good earnings, so it could create a disturbance if we don't get them, but absent of recession, I think the bull is intact."

Small-cap stocks have attracted investor buying in recent days, with both the Russell 2000 (.RUT) , opens new tab and S&P Small Cap 600 (.SPCY) , opens new tab outperforming major indexes for the week. Both small-cap indexes were down slightly on Friday, though.

Energy (.SPNY) , opens new tab was the only S&P sector which dropped. It fell 0.4%, as it was bogged down by lower oil prices and a 4.7% decline in SLB (SLB.N) , opens new tab after it posted earnings below expectations. This dragged down fellow oilfield services providers Baker Hughes (BKR.O) , opens new tab and Halliburton (HAL.N) , opens new tab by 1.3% and 2.1%, respectively.

The energy index was the week's worst-performing sector, dropping 2.6%, as U.S. crude prices slumped 7% due to concerns over Chinese demand and the ongoing conflict in the Middle East.

CVS Health (CVS.N) , opens new tab dropped 5.2% after it replaced CEO Karen Lynch with company veteran David Joyner and withdrew its 2024 profit forecast.

The news also weighed on other health insurers, including Cigna (CI.N) , opens new tab and Elevance Health (ELV.N) , opens new tab. The latter, which fell 3.1%, closed at its lowest level in nearly 15 months.

Volume on U.S. exchanges was 10.62 billion shares, compared with the 11.56 billion average for the full session over the last 20 trading days.

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https://www.reuters.com/markets/us/wall-street-futures-rise-tech-stocks-gain-netflix-jumps-after-strong-earnings-2024-10-18/