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Dow hits record high but Nasdaq drops on earnings

(RTTNews) – Following the uptrend seen in recent sessions, stocks posted a mixed performance in Friday’s session. As the tech-rich Nasdaq rocked, the Dow hit a new closing record.

The Dow Jones fluctuated during the session but ended the day up 73.94 points or 0.2% at 35,677.02. Meanwhile, the Nasdaq slipped 125.50 points or 0.8% to 15,090.20 and the S&P 500 slightly lost 4.88 points or 0.1% to 4,544.90 after closing the trading session. Thursday at a record closing level.

Despite the mixed performance for the day, the major averages all rose significantly for the week. The S&P 500 jumped 1.6%, while the Nasdaq and Dow jumped 1.3% and 1.1%, respectively.

The mixed performance on Wall Street came as traders reacted to mixed earnings news from several large companies.

A sharp drop from Intel (INTC) weighed on the Nasdaq, as the semiconductor giant plunged 11.7% after ending the previous session at its best closing level in three months.

Intel has come under pressure after posting better-than-expected quarterly profits but weaker than expected sales. The company also warned of declining profit margins over the next few years.

Snapchat parent Snap (SNAP) also experienced substantial weakness after reporting mixed results in the third quarter and warning that changes to Apple’s iOS privacy rules will cause growth to slow.

On the flip side, a rally in American Express (AXP) stocks helped the Dow Jones rise as the financial services giant jumped 5.5% after posting better-than-expected third-quarter results in terms of results.

Overall trading activity has been somewhat subdued, however, with a lack of important economic data in the United States keeping some traders on the sidelines.

Sector news

Snap led a massive sell-off in the internet sector, causing the US Dow Jones internet index to fall 3.2%.

Substantial weakness was also visible among airline stocks, as evidenced by the 1.9% drop in the NYSE Arca Airline index.

Semiconductor stocks also saw significant weakness amid Intel’s sharp drop, as the Philadelphia Semiconductor Index fell 1.2%.

On the other hand, bank stocks showed a strong bullish movement, pushing the KBW banking index up 1.5%.

Other markets

In overseas trading, Asia-Pacific stock markets posted another mixed performance during Friday’s session. Japan’s Nikkei 225 index rose 0.3%, while the Chinese Shanghai composite index fell 0.3%.

Meanwhile, major European markets all trended higher on this day. While the French CAC 40 index rose 0.7%, the German DAX index rose 0.5% and the UK FTSE 100 index rose 0.2%.

In the bond market, Treasuries have gained ground after trending downward in recent sessions. As a result, the yield on the ten-year benchmark bond, which moves opposite to its price, fell 2.1 basis points to 1.655%.

Look ahead

The earnings news could continue to boost trade next week, with a slew of big name companies due to release quarterly results.

Facebook (FB), General Electric (GE), UPS (UPS), Alphabet (GOOGL), Coca-Cola (KO), General Motors (GM), McDonald’s (MCD), Ford (F), Amazon (AMZN), Apple (APPL) and Exxon Mobil (XOM) are just a few of the companies due to release their results next week.

Trading next week could also be affected by the reaction to reports on new home sales, consumer confidence, durable goods orders and personal income and spending.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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