Stock Indexes Wrap: Nvidia, Chipmakers Lag as Other Tech G⭕iants Advance

The Dow

The index’s tech components were mostly higher even as an AI sell-off weighed on the broader IT sector. Intel (INTC) gained 1.5%, while Salesforce (CRM) rose 1.3% and Microsoft (MSFT) gained 0.9%. 

Boeing (BA) ticked up 0.3% amid reports it was nearing a deal to acquire supplier Spirit AeroSystems (SPR).

American Express (AXP) inched 0.1% higher after acq🔥uiring restaurant reservation company Tock. 

JPMorgan Chase (JPM) and Goldman Sachs (GS) slid after U.S. regulators identified “shortcomings” i🍌n their respective living wills. 🅠Goldman lost 1.7% and JPMorgan shed 1.2%. 

Apple (AAPL), in the green most of the day, tumbled 1% in the session's final minutes, possibly a byproduct of today’s 澳洲幸运5官方开奖结果体彩网:triple witching or a major index fund’s 澳洲幸运5官方开奖结果体彩网:monumental rebalancing.

S&P 500

FactSet Research (FDS) gained 3.8% after reporting 澳洲幸运5官方开奖结果体彩网:better-than-expected quarterly 𝕴results and raising its full-year guidance. 

Gilead (GILD) rosę 3.2%, gaining for a second day after announcing its injectable lenacapavir was 100% effective in 澳洲幸运5官方开奖结果体彩网:preventing HIV infection in women. 

Nvidia (NVDA) fell 3.2%, slipping for a second꧑ day after briefly surpassing Microsoft as the world’s mo🐓st valuable company on Tuesday. 

Hewlett Packard Enterprise (HPE) slid 2.8%, following Nvidia and other AI-related stocks lower. Chip giants Broadcom (AVGO) and Micron (MU) shed 4.4% and 3.2%, respectively. 

Capital One Financial (COF) slipped 1% amid reports it had settled a lawsuit with Walmart (WMT) related to their credit card partnership. 

Nasdaq 100

Alphabet (GOOGL) rose 1.9% to close at a record high. 

Amazon (AMZN) gained 1.6%, briജnging it about $30 billion away from a $2 trillion market cap.

Chipotle Stock Stalls Ahead of 50-for-1 Split

Shares in fast-casual restaurant chain Chipotle Mexican Grill (CMG) were flat Friday afternoon followin✅g a ꦺ6.2% decline on Thursday, their largest daily percentage loss since last July.

Given that the stock has gained more than 40% since the start of the year and has more than doubled since the start of 2023, 澳洲幸运5官方开奖结果体彩网:institutional investors may be booking some profits ahead of a 澳洲幸运5官方开奖结果体彩网:50-for-1 stock split that takes effect next Wednesday.

Since finding support around the 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA) in October last year, CMG shares have continued to trend sharply higher, with buyers stepping in to buy 澳洲幸运5官方开奖结果体彩网:pullbacks to the 50-day MA. 

Although the price broke above a period of consolidation to a new record high earlier this week, Thursday was a 澳洲幸运5官方开奖结果体彩网:wide-ranging day and the close below the breakout point on the highest 澳洲幸运5官方开奖结果体彩网:trading volume since late March indicates a potential 澳洲幸运5官方开奖结果体彩网:bull trap.

Moreover, as the stock made a higher high this week, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) made a lower high, creating a bearish 澳洲幸运5官方开奖结果体彩网:divergence, a signal that suggests weakening momentum.

澳洲幸运5官方开奖结果体彩网:Read more about wh𒁏ere the stock may find buying support heading into next week's split.

-澳洲幸运5官方开奖结果体彩网:Tim Smith

Stocks To Watch Friday

FactSet Research Systems (FDS) shares rose as the financial data provider reported 澳洲幸运5官方开奖结果体彩网:better-than-anticipated earnings and lifted its outlook on higꦍher revenues from institutional asset managers, asset owners, partners, and corporates.

Shares of Sarepta Therapeutics (SRPT) soared after the 澳洲幸运5官方开奖结果体彩网:Food and Drug Administration (FDA) gave the biotech’s treatment for a rare muscle disease in children 澳洲幸运5官方开奖结果体彩网:expanded approval. The decision also boosted shares of Catalent (CTLT), which has a contract♌ with Sarepta to manufacture the dru꧅g.

Shares of Boeing (BA) supplier Spirit AeroSystems (SPR) surged following reports that Boeing is near a deal to buy the company. Boeing shares edged higher𒀰 as well.

Capital One Financial (COF) shares lost ground after the financial firm settled a lawsuit brought by Walmart (WMT) over their cre🦂dit card partnership. Wa🤡lmart shares were higher.

Shares of American Express (AXP) fell as the credit card provider purchased the Tock restaurant reservation system for $400 million from Squarespace (SQSP). Squarespace shares advanced.

Allstate (ALL) shares dropped after the insurer estimated its catastrophic losses in May at $1.4 billion, nearꦇly three times greater than in April.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Narrowing Breadth Raises Risk of S&P 500 Pullback

The S&P 500 has set record after record in the pa🅠st month, but pop the hood and things aren’t looking quite so gooജd. 

The 澳洲幸运5官方开奖结果体彩网:advance-decline (A/D) line, a measure of 澳洲幸运5官方开奖结果体彩网:market breadth, has been declining since the end of May, even as the S&P 500 has soared to new heights, according to a note from LPL Financial Friday.

Together, a soaring S&P 500 and declining A/D line, as shown in the🎀 chart from LPL Financial below, can be cause for concern on Wall Street. It indicates gains by a handful of large stocks are masking softness among smaller stocks, potentially signaling weakening investor sentiment. 

Lately, the stocks driving the S&P 500’s returns have been the $3 trillion tech giants Microsoft (MSFT), Apple (AAPL), and Nvidia (NVDA), all of which surged to all-time highs in recent weeks. They have been joined by a cadre of smaller 澳洲幸运5官方开奖结果体彩网:mega caps, including Broadcom (AVGO), Oracle (ORCL), and Adobe (ADBE), buoyed by earnings reportsﷺ that d🌼emonstrated strong demand for their AI offerings.

But the rest of the market has languished. As of Thursday’s close, Information Technology (+10.7%) was the only sector to have outperformed the S&P 500 (+3.7%) so far this month. The only sectors within one percentage point of the broader index were Consumer Discretionary (+3.3%) and Communication Services (+2.7%), sectors dominated by AI giants Amazon (AMZN), Alphabet (GOOGL), and Meta (META).

The A/D line divergence noted earlier does not, LPL Financial’s Chief Technical Strategist Adam Turnquist poi🔯nts out, mean the bull market is over, “but it does point to elevated risk the broader market cou❀ld be due for a potential pause or pullback.”

FactSet Stock Rises on✱ Q3 Profit Beat, Raised Guidance

FactSet Research Systems (FDS) shares advanced Friday after the financial data provider 澳洲幸运5官方开奖结果体彩网:posted significantly bet🔯ter-than-expected profit and boosted it🥃s full-year guidance on higher revenues from institutional asset managers, asset owners, partners, and corporates.

The company posted fiscal 2024 third-quarter adjusted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $4.37, well above analysts' consensus estimate of $3.90 compiled by Visible Alpha. Revenue rose 4.3% year-over-year to $552.7 million, basically in line with forecasts. 澳洲幸运5官方开奖结果体彩网:Organic revenue was up 4.5%.

Adjusted 澳洲幸运5官方开奖结果体彩网:operating margin jumped to 39.4% from 36.0% a year earlier, and adjusted earnings before interest, 𓃲taxes, depreciation, and amortization (EBITDA) was $239.9 million, an increase of 16.9%.

Th♊e company’s Annual Subscription Value (ASV) plus professional services came in at $2.22 billion, 4.7%🃏 higher. The number of FactSet users climbed by 1,662 to 208,140. The company noted the gains came from all firm types except banking, and was driven mainly by wealth clients. 

FactSet lifted its full-year adjusted EPS outlook to a ra⛦nge of $16.00 t♈o $16.40, up from the previous $15.60 to $16.00. However, it sees revenue of $2.18 billion to $2.19 billion, down from the earlier $2.20 billion to $2.21 billion.

FactSet shares rose 3% but are down🌳 more than 10% so far this year🐠.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Sarepta Therape🗹utics Soars on Expanded Approval for Its Muscular Dystrophy D𒁃rug

Sarepta Therapeutics (SRPT) shares soared Friday, a day after the 澳洲幸运5官方开奖结果体彩网:Food and Drug Administration (FDA) allowed 澳洲幸运5官方开奖结果体彩网:expanded use of the biotech’s treatment for a rare muscle disease in children, which especially affects boys.

The company said its drug, Elevidys, was given traditional approval for patients who are at least 4 years old and suffer from Duchenne muscular dystrophy (DMD) with a confirmed mutation in the DMD gene and can walk.

Sarepta said regulators granted accelerated approval for use in those who cannot walk, and continued approval “may be contingent upon verification of clinical benefit in a confirmatory trial.” The company added that a Phaseꩵ 3 study to make that confirmation is currently under𓆏way.

The FDA gave accelerated approval for the gene-therapy medicine in 4- and 5-year-olds last year, despite some questions about its efficacy. 

Sarepta shares surged 40%, bringing their y𝔍ear-to-date gain to almost 80%.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Gold Regains Luster as Investors 🉐Eye Rate Cut—Watch The🌜se Key Price Levels

Gold 澳洲幸运5官方开奖结果体彩网:remains in focus on Friday after climbing more than 1% Thursday to a two-week high, as recent lackluster economic data has boosted hopes among investors that the 澳洲幸运5官方开奖结果体彩网:Federal Reserve will be in a position to cut 澳洲幸运5官方开奖结果体彩网:interest rates later this year.

U.S. government reports last week indicated that 澳洲幸运5官方开奖结果体彩网:inflation is moderating, while data on Tuesday this week showed 澳洲幸运5官方开奖结果体彩网:slowing retail sales. The data paint a picture of cooling economic activity, indicating that the Fed's policy of high interest rates to combat inflationary pressures has ♐worked as intended.

According to the 澳洲幸运5官方开奖结果体彩网:CME FedWatch Tool, which forecasts rate movements based on fed funds futures trading data, market participants are currently pricing in a 66% chance of a September rate cut.

Investors typically view a decline in interest rates as a positive catalyst for 澳洲幸运5官方开奖结果体彩网:gold prices as it puts downward pressure on the 澳洲幸运5官方开奖结果体彩网:Greenback, making the dollar-priced commodity cheaper for buyers who are using foreign currencies, helping to stimulate demand. Lower rates also reduce the 澳洲幸运5官方开奖结果体彩网:opportunity cost of holding non-yielding assets, such as gold, compared to lower risk investments like 澳洲幸运5官方开奖结果体彩网:fixed-income securities.

Taking a look at the weekly chart, the yellow metal’s price broke out from a year-long 澳洲幸运5官方开奖结果体彩网:trading range in early March. After initially continuing to trend higher, the price has consolidated within a narrow 澳洲幸运5官方开奖结果体彩网:rectangle pattern since mid-April, potentially indicating a short pause in momentum before another move to the upside.

If the gold price breaks above the rectangle’s top trendline to a new 澳洲幸运5官方开奖结果体彩网:record high, investors can determine a price target using the 澳洲幸运5官方开奖结果体彩网:measuring principle. To do this, we calculate the distance of the move that preceded the pattern in dollars and add that amount to the breakout point. In this case, we add $448 to $2,414 that projects a price target of $2,862. Conversely, If the price breaks down from the rectangle, keep an eye on the $2,080 level, an area likely to find support fr൩om the prior trading range’s top trendline.

-澳洲幸运5官方开奖结果体彩网:Tim Smith

Stock Futures Mixed

Dow futures were flat in pre꧙market trading Friꦫday.

S&P futures were down 0.2%.

Nasdaq futures were down 0.2%.