The major stock indices were under modest selling pressure on Friday despite a strong earnings report and a large price gain for the Dow Jones component. JPMorgan (JPM). But the news was not good Boeing (BA), also on Dow Jones, which fell sharply after warning of fewer 737 MAX deliveries. Boeing cited a supplier parts issue spirit aerosystems (ENG).
X
Money flowed into bonds after March retail sales data came in weaker than expected. Retail sales fell 1% in March, worse than the consensus of -0.4%. Excluding autos, sales fell 0.8%, twice the consensus of -0.4%. The 10-year Treasury yield rose 7 basis points to 3.52%.
The CME FedWatch tool currently projects an 81% chance of another 25 basis point rise at the May 3 meeting. That would raise the federal funds rate to a range of 5% to 5.25%.
Respondents have virtually stopped at a pause in June, with a 44% chance of a 25 basis point cut in July. By the end of the year, there is a projected 50% chance that the federal funds rate will be 4.25% to 4.5%.
The Dow Jones Industrial Average jumped above the 34,000 level on Thursday, rising 1.1% on light volume, but there wasn’t much buying conviction, at least on the New York Stock Exchange.
It was a different story on the Nasdaq composite, which posted a day of accumulation, rising 2% on higher volume. The bullish price action was a welcome development for stock market bulls after the March 29 tracking day.
Start Trading Options with an Advantage: IBD OptionsTrader
tesla (TSLA) was down 1% around noon on Friday after announcing price cuts of up to 10% for the Model 3 and Model Y in Europe. That’s after the price cuts in the US and China in January. Tesla reports earnings next Wednesday, after the close.
In related news, the maker of luxury electric vehicles Lucid (LCID) plunged 9% after reporting disappointing production and delivery data in the first quarter.
dow jones today
The 6% drop in Boeing shares was offset by JPM shares, which rose 7% after the bank reported record first-quarter revenue and a nearly 50% rise in net interest income. . However, deposits fell 7% to $2.38 trillion.
After six consecutive price gains, UnitedHealth (UNH) lost nearly 3% despite strong first-quarter results and a bullish outlook for the full year.
Also in the Dow Jones, Goldman Sachs (GS) was up 1% ahead of next week’s earnings report. Results are due the Tuesday before the opening.
Early laggards in the Dow include Microsoft (MSFT) and Sales force (CRM).
Apple (AAPL) was down today on the Dow Jones after jumping 3.4% on Thursday. You are trying to clear an entry of 166.94.
movers and shakers
Outside of the Dow Jones, the Nasdaq Composite and the S&P 500 were down 0.7% and 0.4%, respectively.
Wall Street also weighed in on earnings reports in the financial sector of PNC finances (PNC), fargo wells (WFC), Citigroup (C) and black rock (BLACK). Blackrock and Citi were two of the top gainers in the S&P 500, up 3.5% and 3%, respectively.
Gold stocks came under selling pressure as the US dollar strengthened. royal gold (RGLD) gave up more than 2%, but after 11 gains in 12 trading sessions, RGLD was due to pull back. It is still comfortably above its 10-day moving average.
Inside the MarketSmith Growth 250, crocodiles (CROX) rallied another 2% by forming the right side of the bottom of a cup. Leaderboard Actions when holding (ONON) also outperformed, rising 3.5% on high volume.
wing stop (WING) was another top gainer in the MarketSmith Growth 250, up 2%. It is nearing the top of an eight week consolidation.
Next week is a busy one on the earnings calendar, including the results of Netflix (NFLX) and intuitive surgical (ISRG). Both firms report on the Tuesday after the close.
Follow Ken Shreve on Twitter @IBD_KShreve for more information and stock market analysis.
YOU MAY ALSO LIKE:
Why this IBD tool simplifies the search for the best stocks
Catch the next big winning stock with MarketSmith
Do you want to make quick profits and avoid big losses? Try SwingTrader
The best growth stocks to buy and watch