The Dow Jones Industrial Average closed at 26,428.32 on Friday with a gain of 114.67 points or 0.44%. The S&P 500 closed at 3,271.12for a gain of 24.90 points or 0.77%. The Nasdaq Composite closed at 10,745.27 for a gain of 157.46 points or 1.49%. The VIX Volatility Index was lower at 24.09 for a loss of 0.67 points or -2.71%.
For the week, the Nasdaq gained 3.7%, the S&P 500 gained 1.7% and the Dow Jones returned -0.2%. For the month, the Nasdaq was up 6.8%, the S&P 500 gained 5.5% and the Dow Jones gained 2.4%. For the year, the Nasdaq has a gain of 19.76%, the S&P 500 is up 1.25% and the Dow Jones has a return of -7.39%.
Friday’s market movers
All of the major indexes closed higher Friday. The Nasdaq gained 1.47% with gains from strong after market earnings reports Thursday evening from Facebook (FB, Financial), Apple (AAPL, Financial), Amazon (AMZN, Financial) and Alphabet (GOOG, Financial)(GOOGL, Financial). Thursday’s big tech results were as follows:
- Facebook: Revenue of $18.69 billion beat estimates by $1.33 billion and increased 10.72% year over year. GAAP earnings of $1.80 per share beat estimates by 40 cents.
- Amazon: Revenue of $88.91 billion beat estimates by $7.62 billion and increased 40.24% year over year. GAAP earnings of $10.30 per share beat estimates by $8.80.
- Apple: Revenue of $59.69 billion increased 10.9% year over year and beat estimates by $7.13 billion. Third-quarter GAAP earnings of $2.58 per share beat estimates by 51 cents.
- Alphabet: Revenue of $38.29 billion decreased 1.7% year over year and beat estimates by $950 million. Second-quarter GAAP earnings of $10.13 per share beat estimates by $1.94.
Rising Covid-19 numbers, yesterday’s -32% gross domestic product report and no advancement on a coronavirus bill that would extend the extra unemployment payout to workers were all detectractors that capped gains for the day.
Earnings highlights from Friday’s releases included the following:
- Pinterest (PINS, Financial): Revenue of $272.49 million increased 4.3% year over year and beat estimates by $17.7 million. A second-quarter GAAP earnings loss of 17 cents per share beat estimates by 12 cents and a non-GAAP loss of 7 cents beat estimates by 6 cents.
- MoneyGram (MGI, Financial): Revenue of $279.8 million decreased 13.6% year over year and beat estimates by $24.48 million. A second-quarter GAAP earnings loss of 6 cents per share beat estimates by 9 cents and non-GAAP earnings of 1 cent beat estimates by 7 cents.
- Caterpillar (CAT, Financial): Revenue of $10 billion decreased 30.6% year over year and beat estimates by $600 million. Second-quarter GAAP earnings of 84 cents per share beat estimates by 12 cents and non-GAAP earnings of $1.03 beat estimates by 31 cents.
- Merck (MRK, Financial): Revenue of $10.87 billion decreased 7.6% year over year and beat estimates by $350 million. Second-quarter GAAP earnings of $1.18 per share beat estimates by 27 cents and non-GAAP earnings of $1.37 beat estimates by 32 cents.
- Chevron (CVX, Financial): Revenue of $13.49 billion decreased 65.3% year over year and missed estimates by $8.22 billion. A second-quarter GAAP loss of $4.44 per share missed estimates by $3.55 and a non-GAAP loss of $1.59 missed estimates by 70 cents.
- Exxon (XOM, Financial): Revenue of $32.61 billion decreased 52.8% year over year and missed estimates by $5.55 billion. A second-quarter GAAP loss of 26 cents beat estimates by 28 cents and a non-GAAP loss of 70 cents missed estimates by 10 cents.
Economic reports affecting market trading included the following:
- Personal income decreased 1.1% in June following a decrease of 4.4%. Personal spending increased 5.6% in June following an increase of 8.5%.
- The PCE Price Index increased 0.4% in June following an increase of 0.1%. The PCE Price Index increased 0.8% year over year.
- The Core PCE Price Index increased 0.2% in June following an increase of 0.2%. The Core PCE Price Index increased 0.9% year over year.
- The Chicago PMI increased to 51.9 in July from 36.6.
- The Michigan Consumer Sentiment Index decreased to 72.5 in July from 78.1.
- The Employment Cost Index increased 0.5% quarter over quarter.
- The Baker Hughes North American oil rig count increased to 296 from 293.
Across sectors, technology and consumer discretionary led gains while biotech and health care led losses. In the Nasdaq 100, the following stocks led gains:
- Apple (AAPL, Financial) 10.76%
- Facebook (FB, Financial) 7.94%
- IDEXX Laboratories (IDXX) 6.32%
- Amazon (AMZN, Financial) 3.54%
- NetApp (NTAP) 3.31%
- Charter Communications (CHTR) 2.94%
- Take-Two Interactive Software (TTWO) 2.8%
- Skyworks Solutions (SWKS) 2.38%
- Electronic Arts (EA) 2.19%
- PayPal (PYPL) 1.83%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,480.43 for a loss of 14.67 points or -0.98%. The S&P 600 closed at 865.38 for a loss of 6.06 points or -0.70%. The Dow Jones U.S. Small-Cap Growth Index closed at 10,486.03 for a loss of 58.57 points or -0.56%. The Dow Jones U.S. Small-Cap Value Index closed at 6,952.79 for a loss of 71.71 points or -1.02%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,863.91 for a loss of 12.35 points or -0.66%; the S&P 100 at 1,504.93 for a gain of 17.06 points or 1.15%; the Nasdaq 100 at 10,905.88 for a gain of 190.37 points or 1.78%; the Russell 3000 at 1,909.89 for a gain of 10.72 points or 0.56%; the Russell 1000 at 1,815.99 for a gain of 11.86 points or 0.66%; the Wilshire 5000 at 33,372.11 for a gain of 203.47 points or 0.61%; and the Dow Jones US Select Dividend Index at 593.37 for a loss of 2.22 points or -0.37%.
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