The major stock market indexes produced mixed results after earnings season kicked off with big banks announcing results. Second-quarter results came from JPMorgan Chase, Wells Fargo, BlackRock and Citigroup.
The Nasdaq composite reversed to a 0.2% decline to close out the trading day on Friday. The Dow Jones Industrial Average held its 0.3% gain, and the S&P 500 closed 0.1% lower. The small-cap Russell 2000 underperformed, dropping 1%.
The Nasdaq posted a healthy 3.3% weekly gain. The Dow Jones pulled ahead 2.3% and the S&P 500 advanced 2.4% for the week. Small-caps showed their muscle despite Friday's drop, powering up 3.6% this week.
The Nasdaq 100-tracking Invesco QQQ Trust ETF was relatively unchanged. The Innovator IBD 50 ETF fared worse than the major indexes, down 1.3%.
NYSE volume fell and Nasdaq volume rose compared with the same time on Thursday, in preliminary numbers.
The 10-year Treasury yield rose 6 basis points to 3.82%. The CME FedWatch Tool showed over 90% odds for a quarter-point hike at the July 26 Fed meeting, and an over-80% chance of an additional quarter-point rate hike at the September meeting.
Big Movers: Biotech Stock Breaks Out
Shares of Arcturus Therapeutics sprinted 15% in heavy volume and hit the 33.80 buy point of a cup base. Shares reached a 52-week high on the move.
The biotech popped after Cantor Fitzgerald reiterated its overweight rating and maintained its price target of 54 on the stock.
The relative strength line also hit a new high as shown by the blue dot in its MarketSmith charts.
Cboe Global Markets gained 0.8% and broke out of a flat base with a 140.82 entry. Shares are in the 5% buy zone, which reaches to 147.86. Several analysts raised their price targets on the stock this week.
Stock Market Action: Bank Stocks Fade
Dow Jones stock JPMorgan Chase trimmed most of its earlier gains to close 0.6% higher. The bank reported higher-than-expected Q2 revenue and earnings. The stock is in the 5% buy zone of a flat base with a 143.37 buy point and hit a 52-week high.
The company saw strength in interest income from higher interest rates and saw higher loan growth. The bank also got a profit boost from its First Republic Bank transaction.
"Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly," said CEO Jamie Dimon. "Almost all of our lines of business saw continued growth in the quarter."
Wells Fargo stock also whittled down its early gain and closed 0.3% lower, despite beating top- and bottom-line estimates. Shares are forming a cup base with a 48.84 buy point and are holding above the 200-day moving average.
The stock is above an early entry around 43 from a trendline.
Citigroup stock reversed lower 4.1% despite exceeding revenue and earnings forecasts. Shares are in an uneven sideways-trending base with a 53.23 buy point. Second-quarter revenue dropped a hefty 12.7% over last year's quarter due to a drop in equity and fixed-income revenue.
Shares of BlackRock pulled back 1.6% after an initial pop at the open of stock market action. The investment company reported stronger-than-expected Q2 EPS and sales.
Other Stock Movers: Health Insurers Rise
Aehr Test Systems gapped up 18.2% in huge volume after the company reported better-than-expected May-ended quarter earnings and sales late Thursday.
Shares gapped up above the buy zone of a cup base with a 40.69 buy point and are also extended from support at the 10-week line. Aehr makes semiconductor test and reliability qualification equipment.
Dow Jones component UnitedHealth Group rallied 7.2% after stronger-than-expected second-quarter revenue and profit. UNH posted its biggest one-day increase since Nov. 4, 2020, when it rose 10.3%. The health care stock was the biggest Dow and S&P 500 gainer Friday.
UnitedHealth raised its full-year EPS guidance due to "strong and well-balanced growth." Quarterly profit grew 10% year over year, while sales grew 16%.
IBD 50 health insurer Elevance Health jumped 5.1% in sympathy with UnitedHealth Group.
Trade Desk stock trimmed larger gains in the final moments of trading, to close up 1.1%. The company will replace Activision Blizzard on the Nasdaq 100 Index on Monday.
The digital advertising stock hit a 52-week high and is above the 25% profit zone from a 66.35 buy point. TTD was the biggest gainer on the IBD 50 today.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
