Stocks closed mixed on Friday with the major indexes showing only modest moves. The Dow Jones Industrial Average was the laggard while the Nasdaq inched higher on the stock market today.
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The Dow ended the day's session with a 0.2% loss and remained below its 50-day moving average. The S&P 500 was nearly flat while the Nasdaq was able to squeeze out a small gain in the final minutes and close at a record high.
The small-cap Russell 2000 fared worse than the major indexes and gave up 1.6% as it tumbled below its 50-day line.
The Dow ended the week with a 0.6% loss and sank below its 10-week moving average. The Nasdaq was the clear winner as it produced a healthy 3.2% weekly gain, while the S&P 500 rose 1.5% for the week.
Volume inched higher on the Nasdaq and fell on the New York Stock Exchange vs. the same time on Thursday, in preliminary numbers. Decliners beat losers on the Nasdaq by more than 2-to-1. The ratio was about 3.5-to-1 negative on the NYSE. The Innovator IBD 50 (FFTY) exchange traded fund pulled back 1.3%.
Meanwhile, the 10-year Treasury yield shed 2 basis points to 4.22%. And U.S. crude oil prices dipped to $78.45 a barrel.
Howmet Slides; Greece Adds To Cruise Line Woes
Updated 3:33 p.m. ET
IBD 50 stock Howmet Aerospace (HWM) slid 5% in heavy volume after Northcoast Research downgraded the stock to sell from neutral with a 70 price target. The stock stopped short of its 50-day line. Howmet makes engineered metal products used in aircraft and space vehicles.
Cruise line stocks topped the losers list on the S&P 500 Friday. They reacted poorly after an analyst at Bank of America said about early June cruise prices,"there was modestly softer pricing in ocean markets relative to early May." Also, Greece announced it plans to cap the number of cruise ship visits to its most popular islands.
Carnival (CCL) dropped nearly 7% while Norwegian (NCLH) plummeted close to 8%. IBD 50 stock Royal Caribbean (RCL) lost more than 4%.
Carnival pulled back to its 50-day line in a double-bottom base with a 17.68 buy point. Norwegian stock undercut its 50-day and 200-day lines, and continued to sail in a choppy base. Meanwhile, Royal stock fell below its 21-day exponential moving average but held above its 50-day line.
Three Titans Vie For Crown In Split Market; Tesla Has A New Base
IBD 50 Stock Netflix, Nvidia Hit New Highs
Updated 3:19 p.m. ET
Netflix topped the 5% buy zone of a cup base buy point of 639, according to MarketSurge pattern recognition. The move came after KeyBanc released a report indicating the streaming entertainment provider's subscribers are increasing their usage of its services.
A SwingTrader stock, Netflix reached a 52-week high on the stock market today. Shares are on track for their highest close since Nov. 19, 2021, when they closed at 678.80, according to Dow Jones Market Data.
In separate news, Netflix announced it will release its second-quarter results on July 18. FactSet projections call for 39% profit growth with a 16% sales increase over the year-earlier period. Full-year estimates show a hefty 55% earnings jump in full-year 2024 and another 21% in 2025.
Leaderboard stock Nvidia rose to yet another record high on Friday, although volume was lighter than average. Shares flashed a power from pivot flag Thursday, after rising more than 20% from a buy point in the last 15 days. Shares are extended from a 20% profit zone from the 97.40 buy point of an undefined base.
Updated 1:42 p.m. ET
Stock Market Today: AI Chip Player Swings To Loss
AI chip designer Arm (ARM), a member of the MarketSurge Growth 250, rose early but faded and swung to a loss. Shares fell despite news that it's being added to the Nasdaq 100. Arm stock dipped further below a 164 buy point.
In IPO news, Tempus AI (TEM) started trading Friday with shares up nearly 6% in recent action. The stock priced late Thursday at 37, at the high end of a proposed range of 35-37.
The company bills itself as a provider of data and analytics tools for precision medicine. The pricing gives Tempus a market capitalization of more than $6 billion.
Home Retailer Plunges
RH (RH) plunged on the stock market today after the luxury home retailer reported a larger-than-expected adjusted loss for its fiscal first quarter even though sales were higher. The company also gave a second-quarter revenue growth outlook that disappointed.
The stock knifed through its 50-day and 200-day moving averages in heavy volume, triggering sell signals. Several analysts also cut their price targets on the stock following the earnings release. The stock has lost nearly 22% so far this year.
Updated 11:55 a.m. ET
Adobe Among Winners In Stock Market Today
Adobe (ADBE) was another top gainer in the S&P 500 after the software giant surprised Wall Street with a solid earnings report. The company was far off highs headed into the report, but the stock gapped up close to its 200-day moving average. The stock was near its session low, but shares still jumped more than 10%.
Adobe said Creative Cloud subscribers are upgrading their plans to access Firefly, Adobe's generative artificial intelligence tool. Adobe shares plunged on Feb. 16 after Microsoft (MSFT)-backed OpenAI announced plans to develop a competing text-to-video generator.
Strength in Adobe helped keep the Nasdaq composite's loss contained at around 0.3%. Besides Adobe, Zscaler (ZS) also outperformed in the Nasdaq 100. The stock was up 1.5%, helped by an upgrade from JPMorgan to overweight from neutral with a price target hike to 230 from 205.
Zscaler is a laggard in the security software group. Amid some selling in the group, CrowdStrike (CRWD) is the outright leader at this point.
Boeing (BA) lagged on the stock market today, down 1.7% after the New York Times reported that the FAA has opened an investigation regarding counterfeit titanium used in some recently built planes. The Wall Street Journal reported that the FAA is looking into fasteners incorrectly installed in undelivered 787 Dreamliners.
Consumer Survey Below Consensus
In economic news, the University of Michigan's consumer sentiment survey came in at 65.6, well below the consensus of 73. The year-ahead inflation expectations component of the index came in at 3.3%, slightly above the 3.2% consensus.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight and Kimberley Koenig for more stock market news on X/Twitter@IBD_KKoenig.
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