The Dow Jones industrial average slipped 5 points, or less than 0.1 percent, to 18,512. The Nasdaq composite declined 6 points, or 0.1 percent, to 5,068. It was the biggest gain in the S&P 500.
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“At these levels there’s some trepidation with investors with valuations extended”, Jim Davis, regional investment manager for The Private Client Group of US Bank, said by phone. “I think it’s interesting; a half-a-percent move down feels like a 5 percent move”.
The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 85 new highs and 25 new lows. On Friday, a barrage of earnings results drove individual stocks, while the broader market got a boost from better-than-expected earnings from companies like General Electric Co., Whirlpool Corp. and Honeywell International Inc.
The Fed pulled rates off their record low in December but has held pat since then. Brent crude, the worldwide benchmark, fell 71 cents, or 1.5 percent, to $46.45 a barrel in London. It was the first day of trading for the producer of natural gas and oil after it reported higher-than-expected earnings and raised its forecast for production this year.
After closing lower Thursday, futures indicate traders aren’t sure how they’d like to end the week as they digest another basket of earnings reports Friday and wait for more information from the Federal Reserve on where rates are headed at next week’s meeting. It benefited from stronger tool sales in Europe and elsewhere.
SOLD: Southwest Airlines fell $3.62, or 8.6 percent, to $38.41 after reporting revenue and earnings growth that fell short of analysts’ expectations. The carrier’s revenue fell 4 percent because of the soft global economy, among other factors, but Wall Street was forecasting a steeper drop.
Southwest Airlines LUV.N fell 11.2 percent and led other airline stocks lower after the company forecast a drop in a key profitability metric. The company also raised its earnings forecast for the year. The medical device maker’s stock had been up more than 30 percent for the year before the report.
OVERSEAS: European markets were mixed after reports suggested countries that use the euro are proving resilient to the uncertainty surrounding Britain’s vote.
USA equity markets have soared the last three weeks, shrugging off worries about the British vote to leave the European Union and well-fuelled by central banks’ commitments to keep interest rates low. Gold rose $9.40, or 0.7 percent, to $1,328 an ounce.
The S&P 500 rose less than 0.1 per cent to 2,173.05 at 11:16am in NY, after closing yesterday at a record for the sixth time in eight days.
BONDS: The yield on the 10-year Treasury note rose to 1.58 percent from 1.56 percent late Thursday.
The best-performing stock in the S&P 500 was eBay, which jumped $2.94, or 10.9 percent, to $29.93 after reporting stronger-than-expected results for the latest quarter.
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American Express, another Dow component, fell 1.6 per cent after reporting a 37 per cent rise in earnings to US$2.0 billion in the second quarter. Shares fell in 1.1% in Japan and 0.2% in Hong Kong overnight.
