The Dow Jones Industrial Average pared its losses but couldn't get out of negative ground Friday as tariff concerns resurfaced with President Donald Trump reportedly pushing for steeper levies from the European Union. Decliners on the stock market today included American Express while Google-parent Alphabet managed some gains.
The Dow fell 0.3%, trimming earlier declines and ending with a 142-point loss. The blue-chip index had stumbled by more than 200 points earlier after the Financial Times reported that Trump wants a minimum tariff of 15% to 20% on EU goods brought into U.S. The report, citing unnamed sources, said a 10% tariff on most items had been part of discussions regarding a framework trade agreement.
The Nasdaq composite managed to score another record high with a meager gain Friday while the S&P 500 barely tipped into negative territory at the close.
The Russell 2000 small-cap index declined 0.6%. Volume was lower on the Nasdaq and the S&P 500 compared with the same time on Thursday. Decliners led the charge, outnumbering advancers by nearly 3-to-2 on both exchanges.
The yield on the benchmark 10-year Treasury note fell to 4.42%. Crude oil dropped near $67.35 a barrel.
In stocks, American Express and 3M dropped more than 2% and nearly 4%, respectively. The selling came despite solid second-quarter results from both companies.
Among Magnificent Seven stocks, Alphabet rose in a buy zone with earnings due on Wednesday. Shares have cleared a buy point of 181.23 from an early-stage cup with handle. Tesla also has earnings due Wednesday. The stock rebounded from its 50-day moving average Friday.
3:07 p.m. ET
Norfolk Southern Climbs Amid Merger Talks
Railway operator Norfolk Southern extended gains amid reports that Union Pacific may be in talks to buy the company.
Shares of Union Pacific fell 1.5% and undercut its 50-day moving average in heavy volume on Friday, triggering a sell signal. Norfolk Southern rose about 2%, with the stock in a buy zone above a buy point of 270.
Market At Highs, But Getting Extended; Google, Tesla Headline Big Earnings
2:15 p.m. ET
Talen Energy Soars On $3.5 Billion Deal
Elsewhere, Talen Energy rebounded from its 50-day moving average. It rocketed past a 25% profit zone from a buy point of 258.03 after the company, which provides data-center power infrastructure for artificial intelligence tasks, said it's acquiring two gas-fired power plants for a total of $3.5 billion.
The acquisition of Caithness Energy's Moxie Freedom Energy Center in Pennsylvania and the Guernsey Power Station in Ohio is expected to enhance Talen's data center contracting. The Ohio station is co-owned by power producer Caithness and investment manager BlackRock.
Managed health care stocks continued to fall and weighed on the S&P 500. Elevance Health tumbled more than 7% and Molina Healthcare fell more than 8%. The health care sector was the second-worst performing S&P 500 sector, after energy. Consumer discretionary and utilities gained.
1:10 p.m. ET
Fed's Waller Calls For July Rate Cut
Late Thursday, Federal Reserve Gov. Christopher Waller voiced his support for a July rate cut, saying that inflation from tariffs would at best be temporary. The Fed is due to meet on July 30 when rates are seen staying unchanged.
Housing starts and building permits came in slightly higher than views for June. Housing starts tallied to 1.321 million, above estimates of 1.3 million. Building permits of 1.397 million also beat economist expectations for 1.38 million.
Among other movers, SLB fell almost 4% after its second-quarter results. Sales fell 6% to $8.5 billion while earnings of 74 cents per share declined 13% from the prior year. A slump in crude oil prices resulted in declining sales and earnings for the previous two quarters. Shares undercut the 50-day moving average on Friday.
3M had rallied and broken out of a consolidation base headed into second-quarter results but gave back some of its gains on Friday on results. Sales grew 1% to $6.3 billion while earnings per share of $2.16 increased 12% from the prior year. Shares are back below a buy point of 156.35.
12:08 p.m. ET
Netflix Gives A Sell Signal
Several growth stocks came under pressure in the MarketSurge Growth 250, including Netflix, which gave a sell signal with a sharp break of its 50-day line. Late Thursday, the streaming giant reported earnings and raised its full-year revenue outlook, but shares still slumped around 5%. Netflix is a member of Leaderboard after first joining the model portfolio on April 23.
Chip designer Credo Technology fell sharply for the second straight day, bringing its weekly decline to nearly 6%. Credo is now making a key test of its 21-day line. That's an area where many leading growth stocks tend to find support during uptrends.
In the financial sector, LPL Financial rallied for the third straight session and cleared a base with 390.23 buy point.
Among heavy construction firms, IBD Sector Leader Argan rallied 2% after two days of sharp declines. Support is still holding at the 50-day line.
10:46 a.m. ET
Consumer Confidence Reading Better Than Expected
In economic news, a consumer confidence index came in slightly better than expected at 61.8, according to the latest reading from the University of Michigan. A key finding in the survey was the year-ahead inflation expectations component falling to 4.4%, well below the 5% consensus.
Charles Schwab was a big gainer in the S&P index, up 3%. The online brokerage gapped up to an all-time high after reporting record revenue of $5.85 billion, up 25%. Trading revenue increased 23% to $952 million.
Schwab opened more than 1 million new brokerage accounts in the quarter, garnering $80.3 billion in new core assets.
9:47 a.m. ET
Stock Market Today: Treasurys Lower, Oil Higher
The 10-year Treasury yield ticked lower to 4.43%. Oil prices rose with West Texas Intermediate futures selling around $68.45 a barrel.
Among exchange traded funds, the Invesco QQQ Trust added 0.1%. The SPDR S&P 500 ETF also was up 0.1% after Friday's market open.
Among the stocks on the move Friday were Coinbase Global, Robinhood Markets and Tesla.
Coinbase shares climbed more than 4%, while Robinhood stock advanced more than 6%. Tesla stock moved up 1.6%, testing resistance at the 50-day moving average line.
9 a.m. ET
Dow Movers: Chevron, Nvidia
Inside the Dow Jones Industrial Average, Chevron and Nvidia were early movers Friday
Chevron stock jumped nearly 4% after an arbitration panel cleared the way for its planned acquisition of Hess. Chevron announced the $53 billion plan to acquire Hess in October 2023.
Nvidia shares climbed another 0.4% in premarket action Friday, looking to extend a win streak to four sessions and set another record high.
8:01 a.m. ET
Stock Market Today: Netflix Stock Slides On Earnings
Streaming giant Netflix topped Wall Street's targets for the second quarter and offered a forecast that was higher than analyst predictions for the current period. The internet television network earned $7.19 a share on sales of $11.08 billion in the June quarter.
Analysts polled by FactSet had expected Netflix to earn $7.07 a share on sales of $11.06 billion. On a year-over-year basis, Netflix earnings rose 47% while sales increased 16%.
But Netflix stock sold off more than 2% in premarket trading Friday.
Earnings Movers: Interactive Brokers, American Express
Other key earnings movers Friday included Interactive Brokers, 3M, American Express and Charles Schwab.
Shares of Interactive Brokers jumped more than 5%, while 3M stock moved up nearly 3%. American Express shares added 0.4%. Finally, Charles Schwab stock climbed in premarket action.
Stock Market Today: Inflation Survey On Tap
Early Friday, the University of Michigan's consumer sentiment is due at 10 a.m. ET. Sentiment is expected to rise to 61.4 in July, vs. 60.7 in June. Also included in the survey are one-year inflation forecasts. Economists predict inflation to stay flat at 5.0%, within a range of 4.7% to 5.2%.
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