Corporate earnings and sentiment continue to drive US stock markets, with the S&P 500 briefly falling into bear market territory during the session, representing a 20% fall from the most recent high.
The S&P 500 managed to finish 0.01% higher, with the Dow Jones up a similar amount and Nasdaq falling 0.3% again.
This resulted in the 8th straight weekly decline for the Dow Jones, the worst streak since 1932, with a 2.9% loss, while the S&P 500 was down 3.1% and the Nasdaq 3.8% lower.
It remains to be seen what will turn the narrative of the market as the reasons keep being added to the wall of worry. But in a positive sign, the Chinese government has cut its key five-year prime lending rate in an effort to stimulate activity across the economy.
Retailers in the spotlight
Earnings season is nearing a close with traditionally defensive companies like Target (NYSE: TGT) and Ross Stores (NASDAQ: ROST) both falling more than 20% after reporting weakening revenue growth and a hit to margins likely as consumers switch back to services spending.
Retailer Foot Locker (NYSE: FL) outperformed, however, gaining 4% on Friday after management reported a slight increase in revenue and a profit of $133 million for the quarter whilst reiterating sales to be down between 4% and 6% for the rest of the year.
US stock market movers
Here’s how other popular US stocks performed on Friday to close out the week.
- Palo Alto (NASDAQ: PANW) up 9.7%
- CrowdStrike (NASDAQ: CRWD) up 4.3%
- Twitter (NYSE: TWTR) up 2.7%
- Moderna (NASDAQ: MRNA) down 5.0%
- Tesla (NASDAQ: TSLA) down 6.4%
- Shopify (NYSE: SHOP) down 7.0%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to open lower this morning. For a round-up of the latest news, check out my ASX 200 morning report.
