Major indexes experienced slight losses on Friday afternoon. Coinbase stock saw a surge after reporting an unexpected Q4 profit, while Roku faced selling pressure due to a wider-than-expected loss and lower average revenue per user. COIN stock has been performing well alongside the rally in bitcoin, while ROKU stock took a hit.
The latest reading on wholesale prices came in higher than expected, leading to a negative sentiment in the market. The producer price index rose 0.3% month over month, above the consensus forecast, with core prices also showing a significant jump. This follows weak retail sales data and higher than expected consumer prices earlier in the week.
In terms of individual stocks, chip-equipment firms like Applied Materials, Lam Research, and KLA outperformed due to strong earnings reports. The Nasdaq composite was down 0.4%, with the 10-year Treasury yield rising to 4.31%.
While the Dow Jones Industrial Average remained mostly flat, companies like Nike saw a significant drop following a downgrade and cost-cutting plans. The S&P 500 was unchanged, with the Russell 2000 small-cap index seeing a 0.7% decline.
Despite some individual winners like Eli Lilly, many stocks were well extended past proper entry points. Nvidia, which is set to report earnings next week, rallied after an increase in price target. Some stocks, like Texas Roadhouse and Kinsale Capital, are soaring after earnings reports but are also well extended.
