The stock market showed mixed performance on Friday, with the Dow Jones Industrial Average reaching near session highs while other indexes experienced losses. The inflation report released on Friday initially pleased investors, but the enthusiasm was short-lived. Tech stocks, including Nvidia and Apple, faced pressure as a result of disappointing earnings from Dell and Salesforce.
In recent trading, the Dow was up by 0.7%, while the S&P 500 fell by 0.2% and neared a critical support level at the 50-day moving average. The Nasdaq was the worst performer of the day, seeing a decline of 1.1%. Earnings reports from companies like Dell, Zscaler, Gap, and Costco influenced stock movements.
The inflation data released on Friday showed that the personal consumption expenditure price index rose by 0.3% in April compared to March and by 2.7% year-over-year. Core inflation also met expectations, increasing by 0.2% in April and by 2.8% annually. Following the report, the yield on the 10-year Treasury note decreased by 4 basis points to 4.51%.
Market volume increased on the NYSE but dropped on the Nasdaq. Advancers outnumbered decliners on both exchanges. The Russell 2000 index rose by 0.1% and continued to test support at the 50-day moving average. Meanwhile, the Innovator IBD 50 ETF saw a larger loss of over 2%, partly due to the decline in Powell Industries’ stock price.
Salesforce was among the top gainers in the Dow, rebounding from an earnings sell-off the previous day. Conversely, tech stocks slumped, while health stocks performed well. Federal Signal broke out at a buy point of 88.47, with the relative strength line reaching a new high. Matson also broke out at 122.99.
Shares of Dell plummeted by 18% after the company’s outlook disappointed investors, but the stock found support at the 50-day moving average. Earnings results influenced Costco, Gap, and Ulta Beauty stocks, with Gap experiencing a significant surge. Ambarella recorded a 19% increase after reporting its first-quarter earnings.
In the semiconductor sector, Marvell Technology fell below its 50-day line despite beating sales expectations. Software security plays like SentinelOne and Zscaler also experienced fluctuations following earnings reports.
Nvidia’s stock price fell but remained near its all-time high, with its market cap approaching that of Apple, the second most valuable company. Currently, Nvidia’s market cap stands at $2.715 billion compared to Apple’s $2.927 billion. For more stock market news, follow VRamakrishnan on Twitter.
In conclusion, it is evident that earnings reports and inflation data were the key drivers of stock movements on Friday, with tech stocks experiencing pressure while health stocks showed resilience. Investors should closely monitor these developments to make informed investment decisions.
