The stock market couldn't pull out of the doldrums, as the major indexes closed the day with modest losses on Friday. Investors focused on the federal debt ceiling meeting and separately to Fed Chair Jerome Powell's comments on monetary policy.
Indexes came off session highs after Republican House Speaker Kevin McCarthy said the latest discussions had yielded no progress. The Friday talks ended with no date set for the next meeting.
At a conference on monetary policy and the economy, Powell said that due to the banking system stresses, "our policy rate may not need to rise as much as it would have otherwise to achieve our goals."
He added that inflation is still too high and that the Fed would stay "steadfast" in its goal to reduce prices.
The 10-year U.S. Treasury yield added 4 basis points to 3.69%. The CME FedWatch tool shows over 80% odds for no rate hike at the June Fed meeting and the remainder expect a quarter-point hike. Earlier in the day the expectation was closer to 60% for no rate hike, but that quickly changed following Powell's comments.
The Dow Jones Industrial Average fell 0.3% and the Nasdaq dipped 0.2%. The S&P 500 trimmed 0.1%. The Russell 2000 fared worse, pulling back 0.6%.
The stock major indexes closed the week with gains, with the tech-heavy Nasdaq rallying 3%, the S&P 500 rising 1.7%, and the Dow eking out 0.4%.
NYSE and Nasdaq volume fell vs. the same time on Thursday, in preliminary numbers.
The Nasdaq 100-tracking Invesco QQQ Trust ETF fell just 0.2%, highlighting continued Big Tech resilience. The Innovator IBD 50 ETF lagged with a 0.5% drop.
Crude oil was relatively flat at $71.93 per barrel. Gold futures rose 0.9% and still traded below the psychological $2,000 level. Bitcoin added 0.4% to $26,885.
Stock Market: Buffett Can't Get Enough OXY
Warren Buffett's Berkshire Hathaway added over 3.4 million shares of Occidental Petroleum, according to an SEC filing. The addition lifts Berkshire's ownership to nearly 25% of Occidental. OXY shares rose 1.5% on the news but trimmed gains.
Berkshire Hathaway stock climbed above the 331.94 buy point of a long cup-with-handle base. But shares reversed and slipped below the entry late Friday.
IBD 50 stock Global-E Online popped 6.1% in heavy volume, ahead of its Q1 earnings announcement Monday before the opening bell. Analysts estimate a loss of 29 cents per share. The company has not posted a profitable year since its trading debut on May 12, 2021.
Shares climbed above the 34.92 buy point of an irregular base and are in the 5% buy range extending to 36.66. The Israel-based company provides an e-commerce platform tailored to international transactions.
Applied Materials fell 2.3% after posting better-than-expected April-ended quarterly earnings and sales. But the company gave subdued guidance late Thursday.
Shares hit the 125.72 buy point of a cup base on Wednesday, then popped another 3.4% in heavy volume Thursday, solidifying the breakout. AMAT is in the low end of the 5% buy zone, which reaches to 132.01, according to IBD MarketSmith.
Debt-Ceiling Talks, Nvidia Earnings Key For Rally; Is Tesla A Buy Now?
Other Stock Movers: Footwear Stocks Trip Up
Foot Locker tumbled 27.2% in very heavy volume after reporting worse-than-expected profit and sales early Friday. Comparable-store sales fell 9.1%, while inventories rose 25%.
Management said sales have softened significantly, prompting a reduction in full-year guidance and price cuts to clear out inventory. The footwear retailer fell below its 50-day moving average and the 200-day line in intense volume, a sell signal.
Shoe retail competitors fell in sympathy, with Dow component Nike falling 3.5%, Crocs 5.5% and On Holding another 3%.
Deckers Outdoor also fell 3.8% in heavy volume, sending shares below the 50-day line in a sell signal. Deckers' brands include Hoka, Teva and Ugg.
Dick's Sporting Goods also felt the pain, tanking 6.8% in heavy volume.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
