The stock market closed flat to down, with the Dow Jones deteriorating slightly in the final hour of trading Friday. Investors weren't shaken in this final day before the Nasdaq 100 rebalancing.
The Nasdaq 100 special rebalance, the first since 2011, will adjust the weights of the 100 Nasdaq components. The goal is to make the Nasdaq 100 less dominated by a handful of major stocks.
The rebalance, announced July 11, will go into effect before Monday's open. It aims to reduce the dominance of heavily weighted Big Tech names coined the "Magnificent Seven."
The redistribution gives other stocks — including Starbucks, Mondelez, Booking Holdings, Broadcom, Analog Devices and Gilead Sciences — more weight in the Index.
The Nasdaq composite weakened and closed down 0.2% in Friday afternoon trading. The Dow Jones Industrial Average and the S&P 500 closed mostly flat. Meanwhile, the small-cap Russell 2000 underperformed and dipped 0.4%
The Dow earlier had gained around two points and tried hard to make it a 10-session winning streak; its longest since August 2017.
The Nasdaq 100-tracking Invesco QQQ Trust ETF shed 0.3%. Innovator IBD 50 ETF was slightly weaker than the major indexes, trimming 0.4%.
NYSE and Nasdaq volume fell vs. the same time on Thursday, in preliminary numbers.
Stock Market Action: Auto Parts Stock Hits 52-Week High
XP climbed 4.4% in light volume after Credit Suisse upgraded the stock to neutral from underperform and raised its price target to 26 from 15.
Shares are extended from a three-weeks-tight pattern with a 24.74 buy point. Shares of the Brazil-based online broker and financial products provider have rallied since XP posted first-quarter earnings on May 15. XP stock has gained over 70% this year so far.
Thinly traded Scholastic gapped up 11.5% in huge volume after the children's book publisher reported better-than-expected May-ended quarterly results.
Quarterly EPS grew 31% on 3% sales growth. Analysts expect 6% annual EPS growth in fiscal 2024 and 18% the next fiscal year. The company also announced a $100 million stock buyback.
Autoliv rallied 10.2% Friday in heavy volume and cleared a cup-base buy point at 98. Shares are in the 5% buy zone that reaches to 102.90.
The stock rallied after the company exceeded second-quarter earnings and sales expectations. Quarterly EPS grew 114% on 27% sales growth. The Swedish maker of auto air bags, safety belts and other safety products cited price increases, organic growth and cost reduction as factors in its higher profits.
Three Tests This Week For AI, Market Rally
Friday Stock Losers
Intuitive Surgical tanked 3.2% even as the company beat analysts' June-ended quarterly sales and profit expectations Thursday. Its installed da Vinci robotic surgery systems lagged forecasts.
American Express tumbled 3.9% after the company reported lower-than-expected Q2 sales and higher earnings. The stock fell below its 21-day line. AXP was the biggest Dow Jones loser today.
CSX sank 3.7% after the railroad operator posted lower-than-expected second-quarter sales and in-line EPS. The stock sank below its 50-day moving average, triggering a sell signal.
Interpublic Group tumbled 13.3% in heavy volume after the company reported its Q2 earnings and gave a lower annual revenue growth forecast. The advertising and marketing company plunged below the 200-day moving average, triggering a sell signal. The stock is the biggest S&P 500 loser today.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
