Major stock market indexes started off on a negative note on Friday as companies worldwide faced computer operation outage issues. Despite this, Netflix saw a positive uptick of more than 3% following a mixed earnings report.
The Dow Jones Industrial Average fell by 0.5%, the S&P 500 dropped 0.2%, and the Nasdaq composite eased 0.1%. The 10-year Treasury yield rose to 4.23% early Friday, while oil prices saw a slight decrease.
A software update from cybersecurity firm CrowdStrike on Friday led to major computer outages affecting airlines, banks, and other companies. Although CrowdStrike shares initially plummeted nearly 12%, they found support at the 200-day moving average.
Netflix exceeded Wall Street’s estimates for the second quarter, with its stock fluctuating in extended trading due to a soft revenue outlook but ultimately rising by 1.8% after the market open. On the other hand, Intuitive Surgical surpassed second-quarter earnings forecasts, with shares soaring nearly 9% at the open and hitting a record high.
In Thursday’s trading, the Dow Jones Industrial Average, the S&P 500, and the Nasdaq composite all experienced declines. The Russell 2000 index dropped by almost 1.9%, showcasing broad-based selling in the stock market. All sectors of the S&P 500 traded lower, except for the energy sector.
It’s crucial to stay informed about changing market conditions and read The Big Picture column. Investors should also be mindful of adjusting their strategy according to market fluctuations and IBD’s new exposure levels.
Several stocks stood out on Friday, including AppFolio, NXP Semiconductors, Palantir Technologies, and Toast. Dow components like American Express and Goldman Sachs experienced fluctuations, with the latter re-entering the buy range above a flat-base entry.
The stock market landscape is dynamic, with companies like Nvidia and Tesla seeing minor declines on Friday. Amazon and Microsoft, part of the Magnificent Seven, also faced challenges amidst the CrowdStrike outage. Keeping an eye on growth stocks, market trends, and the Dow Jones Industrial Average can provide valuable insights for investors.
Overall, staying informed, adapting to market changes, and monitoring specific stocks and sectors can help investors navigate the ups and downs of the stock market successfully.
