The stock market held fairly steady in the final hour of trading on Friday with the major indexes posting mixed results. Friday's pullbacks came as consumer sentiment readings brought an unpleasant news to investors. Meanwhile, earnings season got underway with big banks first to report numbers.
Markets were rattled after preliminary October numbers from the University of Michigan's consumer sentiment reading came in at 63.0 vs. estimates for 67.5. The number was well below the 68.1 reading from the prior month and stood at its lowest level since May.
The Nasdaq was hit hardest, sinking 1.2% on the stock market today. The Dow Jones Industrial Average clawed back to a 0.1% gain, while the S&P 500 lost 0.5%. Meanwhile, the small-cap Russell 2000 dipped lower by 0.9%
The Nasdaq unsuccessfully tested its 50-day moving average while the S&P 500 continued to hold firmly below its 50-day line. And the Dow remained submerged under its 200-day moving average.
Volume fell on the New York Stock Exchange and the Nasdaq, compared with Thursday's trading at the same time of day, in preliminary numbers.
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, notched lower 1.3%. The Innovator IBD 50 ETF pulled back 1.3%.
Stock Market Action: Bank Stocks Mixed After Earnings
Dow Jones component JPMorgan Chase trimmed larger gains and inched up 1.5% in heavy volume after the bank reported higher-than-expected third-quarter earnings and sales. Shares are in a flat base with a 159.38 buy point, according to MarketSmith pattern recognition. The bank stock is finding support at its 50-day line.
Asset management stock BlackRock fell 1.3% even after the investment management company beat third-quarter earnings forecasts and reported in-line revenue.
Dow Jones stock UnitedHealth gained 2.6% after the health care company reported higher third-quarter profit and revenue than projected. Shares are in a long irregular base with a 558.10 buy point.
Wells Fargo shares climbed 3.1% after the company reported a beat on earnings and sales numbers. Citigroup stock gave back earlier gains and fell 0.2% after the bank and financial firm reported flat earnings and higher sales.
PNC Financial shares dropped 2.6% in heavy trading after the bank topped earnings estimates and missed on revenue.
Finally, insurance stock Progressive gapped up 8.1% in heavy volume and broke out of a cuplike base after bypassing the 149.87 buy point. The insurance company reported higher-than-expected earnings for the third quarter, but lower sales.
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Stock Movers: DoorDash Plunges
IBD 50 stock DoorDash tanked 5.9% and pierced its 50-day line flashing a sell signal.
Elsewhere on the stock market, travel stocks got hit hard with the Israel-Hamas war intensifying. Norwegian Cruise Line tumbled 4.1% to make it a four-day losing streak. NCLH stock is nearly 8% below its 200-day line.
Similarly, shares of cruise line stock Carnival skidded 2.7%. It also trades under its 200-day moving average. Royal Caribbean Group sank 3.1% and is heading toward its 200-day line.
IBD 50 stock Duolingo tumbled 8.6% on Friday after the language-learning company hit a 52-week high on Wednesday. Shares gave back gains from its breakout and undercut the 162.20 buy point of a double-bottom base. The move triggered a round trip sell signal.
Dollar General shares popped 9.2% on Reuters news that Todd Vasos, the company's former chief executive, will be back at the helm effective immediately.
Regeneron Pharmaceuticals broke out of a flat base after hitting a 647.50 entry point but pulled back to the base and closed up a modest 0.1%. The move came after RBC Capital raised its price target to 847 from 833 and maintained its sector perform rating on the biotech stock.
And Netflix retreated 1.5% after Wolf Research downgraded the streaming services stock to peer perform from outperform.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
