Dow Jones Today: Tech Rally Boosts Nasdaq and S&P 500; Dow on Pace for 5th Straight Decline
· InvestopediaMajor U.S. stock indexes were mixed Friday afternoon following a bumpy few days of trading, as investors prepare for a huge week of critical economic data and earnings reports.
The Dow Jones Industrial Average was down 0.2%, while the S&P 500 and Nasdaq Composite rose 0.5% and 1.3%, respectively. On Thursday, the Dow finished lower for the fourth straight day, while the S&P 500 and Nasdaq gained ground as EV maker Tesla (TSLA) had its best day in more than a decade. The Nasdaq is on course for its seventh consecutive week of gains, while the S&P 500 and Dow are on track to snap their six-week winning streaks.
Tesla shares, which soared 22% yesterday, were up another 3% Friday, while other large-cap technology stocks were higher across the board. Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META) and Broadcom (AVGO) were all gaining ground.
After several busy days of earnings releases from major companies, the calendar is relatively light on Friday. Shares of Deckers (DECK) were up 11% after the maker of Ugg and Hoka footwear released better-than-expected quarterly results and boosted its outlook. Centene (CNC) shares were up 7% after the managed care company reported strong earnings, while Colgate-Palmolive (CL) was down 3% after releasing its results.
Next week brings earnings reports from 'Magnificent 7' members Apple, Microsoft, Alphabet, Meta and Amazon, as well as Intel (INTC), Advanced Micro Devices (AMD), McDonald's (MCD), Eli Lilly (LLY), ExxonMobil (XOM), Starbucks (SBUX) and many other noteworthy companies.
On the economic data front, consumer sentiment data released Friday morning came in better than economists had expected. Investors are bracing for key readings next week on inflation and GDP growth, as well as the monthly jobs report. Market participants are looking for continued signs that the economy is on sound footing, as well as information that could influence the Federal Reserve's upcoming decisions on interest rates.
The yield on 10-year Treasurys, which is sensitive to expectations about where interest rates are headed, was little changed at 4.20% in recent trading. The yield surged above 4.20% earlier this week for the first time since late July as investors have recalibrated their projections on how aggressive the Fed will be in cutting its benchmark lending rate.
Gold futures were holding steady, at around $2,750 an ounce, while bitcoin was down slightly at around $67,800.
Centene Stock Pops on Membership, Revenue Growth
1 hr 5 min ago
Centene (CNC) shares surged Friday after the managed care and health insurance provider's third-quarter results easily beat estimates as it boosted its membership rolls and premium and service revenue.
The company reported adjusted earnings per share (EPS) of $1.62, with revenue up more than 10% year-over-year at $42.02 billion.
Membership totaled 28.64 million compared with 27.97 million a year earlier, lifted by a 22% gain in Marketplace and 49% advance in Medicare Prescription Drug Plans. Premium and service revenue grew almost 6% to $36.90 billion.
Centene noted that based on ratings from the Centers for Medicare and Medicaid Services (CMS), it had about 46% of its Medicare Advantage enrollees in plans rated 3.5 stars or higher, up from 23% in the prior year.
Centene expects full-year revenue in a range of $159 billion to $161 billion, up from its earlier outlook of $155 billion to $157 billion.
The stock was up nearly 7% in recent trading at around $66, after rising above $70 early in Friday's session. Despite the gain, Centene shares have lost 11% so far in 2024.
Deckers Soars as Earnings Boosted by Strong Hoka Sales
2 hr 41 min ago
Deckers Outdoor (DECK) shares soared Friday, a day after the footwear maker posted better-than-expected results and boosted its outlook as demand for its Hoka brand shoes surged.
The company reported second-quarter fiscal 2025 diluted earnings per share (EPS) of $1.59, with revenue up 20.1% from a year ago to $1.31 billion. Both exceeded analysts' estimates compiled by Visible Alpha.
Sales of Hoka shoes jumped 35% to $579.9 million, while Ugg sales were up 13% to $689.9 million. Domestic revenue rose 14% to $853.9 million, and surged 33% to $457.4 million internationally.
Shares of Deckers were up 13% Friday morning, trading at their highest levels since June, and have added more than 50% of their value this year.
Versace Parent Capri Plunges as Tapestry Deal Blocked
3 hr 31 min ago
Capri Holdings (CPRI) shares plummeted nearly 50% after a federal judge blocked Coach owner Tapestry's (TPR) $8.5 billion acquisition of the Versace and Michael Kors parent.
Shares of Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, were up 15% after the ruling, which sided with antitrust regulators in arguing that the combination would hurt competition and lead to higher prices.
The luxury brands announced the deal last year but the Federal Trade Commission (FTC) sued to block their merger, saying the combined firm would have too much power and reduce competition in the market for accessible luxury handbags.
On Thursday, Southern District of New York judge Jennifer Rochon granted the FTC's motion for a preliminary injunction to block the proposed merger in a 169-page ruling.
Both Capri and Tapestry said they would appeal.
Six-Week Winning Streak in Danger of Ending
4 hr 38 min ago
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite have posted weekly gains for six consecutive weeks.
That streak is in danger of ending as trading gets underway Friday. The chart below shows the performance of the major indexes this week through Thursday's close.
Futures Point to Higher Open for Major Indexes
5 hr 29 min ago
Futures tied to the Dow Jones Industrial Average were up 0.2%.
S&P 500 futures were up 0.3%.
Nasdaq 100 futures were up 0.4%.