Stock market indexes closed in negative territory Friday, but made a valiant effort in the final hour of trading as they narrowed losses. Big bank earnings met with mixed reactions, while retail sales showed consumers are tightening their wallets.
The Dow Jones Industrial Average traded 0.4% lower and closed below the 34,000 level it topped Thursday. The Nasdaq also lost 0.4% while the S&P 500 shaved off 0.2%. The iShares Russell 2000 ETF was the hardest hit, losing 0.9%.
The Dow closed the week 1.2% higher and the S&P added 0.8%. The Nasdaq managed to eke out a 0.3% gain.
NYSE volume rose slightly while Nasdaq volume dipped compared with the same time on Thursday, according to preliminary numbers.
The Nasdaq 100-tracking Invesco QQQ Trust ETF retreated 0.2%. The Innovator IBD 50 ETF was unchanged.
Crude oil gained 0.6% to $82.64 per barrel. Gold futures tumbled 1.8% to $2,019 per ounce. The SPDR Gold Trust ETF slid 1.8% along with the yellow metal.
Bitcoin slipped 0.1% to $30,510, holding above the psychological $30,000 level. Cryptocurrency exchange Coinbase found strength, gaining 1.4%.
The 10-year U.S. Treasury yield added 7 basis points to 3.52%. The CME FedWatch tool shows nearly 80% odds for a quarter-point rate hike at the May Fed policy meeting.
March retail sales declined 1%, worse than -0.4% expectations, showing that consumers are pulling back on spending. Sales excluding vehicles fell 0.8%, twice the expected drop for the month.
Stock Market Movers: Banks Post Upbeat Results
Dow component JPMorgan Chase rallied 7.6% in heavy volume after reporting better-than-expected Q1 earnings and revenue. Management raised guidance.
Shares of the financial giant reclaimed the 50-day moving average and are in a flat base with a 144.44 buy point. The move was the largest gain since Nov. 9, 2020, when it rose 13.5%. JPM was the biggest gainer in the Dow and S&P 500 today.
Citigroup popped 4.8% after beating Q1 top and bottom lines on higher net interest income.
BlackRock jumped 3.1% after reporting better-than-expected Q1 EPS but falling short on revenue. BLK reclaimed its 50-day line.
Wells Fargo reversed lower 0.1% despite exceeding Q1 EPS and sales estimates.
PNC Financial Services rebounded 0.4% in heavy volume after beating on Q1 EPS but missing on revenue.
Dozens of major financials are due next week, including Bank of America, Charles Schwab, Goldman Sachs and Morgan Stanley. Regional and superregional banks will also report.
IBD 50 stock ServiceNow fell 4.2% after hitting the 482.43 buy point of a cup-with-handle base Thursday. Shares of the digital workflow company tested the 21-day line and found support.
Catalent plunged 26.8% after announcing that manufacturing issues and higher-than-expected costs would significantly impact revenue in the next two quarters. The gene therapy and consumer health products maker appointed an internal executive as interim CFO, after the departure of its senior vice president and CFO.
CTLT was the S&P 500's biggest loser today.
Dow Downers
Dow Jones component UnitedHealth fell 2.7% in Friday's stock market despite beating on Q1 earnings and sales, and raising full-year EPS guidance. The move sent UNH slightly below the 200-day moving average.
Shares are in a cup base with a 558.20 buy point. The stock had been on a tear since favorable 2024 Medicare rate adjustments were announced earlier this month.
Boeing tanked 5.7% in heavy volume after news that 737 Max plane deliveries could be delayed due to a manufacturing issue at supplier Spirit AeroSystems. The move sent BA stock below the 50-day line, a warning sign. BA was the Dow's biggest loser Friday.
Shares of SPR plummeted 20.7% on the news, also falling below the 50-day level.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
