Stocks stumbled out of the starting gate Friday, as the market launched into a a pre-Veterans Day holiday trading session.
XAutoplay: On | OffThe S&P 500 and the Nasdaq Composite each dropped 0.2% at the open. The Dow Jones industrial average whittled a 0.1% decline.
The Dow heads into Friday’s session toting a 0.3% loss for the week. The Nasdaq is down 0.2% and the S&P 500 is showing a 0.1% decline. The Dow and S&P 500 have each logged eight-week rallies. The Nasdaq is sitting on a six-week advance.
This year’s Veterans Day holiday falls on Saturday, so banks as well as stock and bond markets will operate on a normal schedule. Friday is a federal holiday, so non-essential federal offices will be closed.
NYSE Group parent Intercontinental Exchange (ICE) announced plans to donate 100% of trading proceeds earned Friday on the NYSE American market, which specializes in small to mid-cap growth companies, to Headstrong — a charity providing mental health services to U.S. veterans.
Netflix, McDonald’s Back Off, Disney Leads Dow; Nvidia, Hertz Pop; Trade Desk Stops Out
Walt Disney (DIS) reversed Thursday’s after-hours losses and surged more than 2% at the start of trade. The media giant countered weak fiscal fourth-quarter results by announcing it would slash prices on its new “Disney-only” streaming platform well below competitors’ rates, as well as plans to launch a new “Star Wars” trilogy. The stock is testing of resistance at its 40-week moving average, moving up the right side of a seven-month consolidation.
McDonald’s (MCD) took the Dow’s hardest early hit, down 1.2% and looking at a third straight decline. Shares traded down 3% from Tuesday’s high.
Biotech drugmaker Dynavax Technologies (DVAX) popped 4%, after announcing the Food and Drug Administration had approved its Hepislav-B, hepatitis B vaccine. The Berkeley, Calif.-based company said it plans to launch the drug in the first quarter of 2018. The premarket move implied the stock would open at a new high, but its current chart pattern is too deep and short to offer a valid buy point.
IBD 50 stock Nvidia (NVDA) climbed 5% on quarterly results, reported late Thursday, that cleared analysts’ targets by wide margins. The stock ended Thursday extended 18% above a 174.66 buy point in a flat base.
J.C. Penney (JCP) jetted ahead 15% at the open. The Plano, Texas-based retailer reported smaller-than-expected third-quarter sales and earnings declines, as well as same-store-sales growth of 1.7%, double its earlier guidance. Shares remain down down 74% from a March 2016 high.
Rental car brand Hertz Global (HTZ) bounced 5% at the open, taking back a piece of its 17% dive for the week through Thursday. The company reported after Thursday’s close its third-quarter earnings beat analyst expectations. Revenue rose 1.2%, just shy of estimates, but the company did report increasing pricing strength due to fleet mix and management tools. Shares are up 115% from a June low.
The Trade Desk (TTD) dropped 12% as third-quarter results bested analysts’ estimates, but fourth-quarter guidance worried investors. The stock had undercut its 10-week moving average in heavy trade Thursday, and erased gains from an October breakout.
Japan, Europe Slip; Up Next — Consumer Sentiment
In Japan, Tokyo’s market continued its pullback, slipping 0.8% and marking its first three-day decline since early September, but still ending the week up 0.6%. China’s markets ended mixed on Friday.
In Europe, stocks deepened their losses in afternoon trade, with London’s FTSE 100 down 0.6% and the CAC-40 in Paris 0.3% lower.
U.S. economic news kicks off at 10 a.m. ET, with the University of Michigan’s preliminary reading on November consumer sentiment. Baker Hughes’ (BHGE) weekly rig count report is due out at 1 p.m. ET, and the Treasury Department is scheduled to release its October budget at 2 p.m. ET.
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