Stocks wobbled out of the starting gate Friday, with the Nasdaq and S&P 500 grabbing opening gains, while the Dow struggled in flat trade.
JPMorgan Weighs, Wal-Mart, Boeing Lift Dow; CyberArk Capsized
Big banks rolled out early earnings reports on Friday, with Citigroup (C), JPMorgan, Wells Fargo (WFC) and PNC Financial (PNC) all eking out small moves as investors pored over their earnings results.
JPMorgan dropped 2.4%, the weakest early move among Dow industrials. The blue chip bank posted wide beats on its revenue and earnings lines, but trading revenue dropped 14%, led by a 19% year-over-year decline in fixed income trading. The stock is trading below a 94.08 buy point, after briefly clearing that mark July 6 and 7.
Citigroup shed 1.5%, while Wells Fargo fell 2.1% following their reports.
PNC Financial reversed its initial gain and dropped 1.1% in early trade. The stock is below a 128.35 buy point in a cup with handle base.
Wal-Mart jumped 1.4% to lead the Dow industrials. Goldman Sachs upgraded Wal-Mart to buy, from neutral, and added the name to its conviction buy list. Boeing climbed 1% after an upgrade to overweight, from neutral, from JPMorgan.
Apple shares were down 0.1% just after the open. The stock rose more than 1% in weak trade Thursday, as it tinkers away on a possible flat base pattern forming just below the stock’s 10-week moving average.
CyberArk Software (CYBR) took an early slam, crumbling 16% after reporting late Thursday that it expects its second-quarter revenue would miss analyst estimates by a wide margin. The company said it was unable to close certain overseas sales it had anticipated reporting. JPMorgan and Deustche Bank both downgraded the stock Friday morning.
Acacia Communications (ACIA) jumped at the open, then turned and fell 4% early Friday. The maker of fiber-optic telecom gear lowered its second-quarter earnings and revenue outlook to below consensus targets, and also trimmed its Q3 guidance. Management cited supply constraints, related to a quality control problem with one if its three contract manufacturers. Acacia shares are 67% below their September peak.
F5 Networks (FFIV) dropped 6%, dinged by a downgrade to neutral, from overweight, by Piper Jaffray. The networks solutions provider has been trading below its 10-week moving average since April.
Oil Rebound Continues; June Retail Sales, Consumer Prices Stall
Oil prices rose 0.7% gain, holding West Texas Intermediate just above $46 a barrel and up about 4% for the week ahead of Baker Hughes’ (BHI) weekly rig count report at 1 p.m. ET.
Retail sales dropped 0.2% in June, the Commerce Department reported, worse than May’s 0.1% decline and undercutting economist projections for a rise of 0.1%. Minus cars and gasoline, sales slipped 0.1%, vs. a no change reading in May, and far below consensus views for a 0.4% advance.
Consumer prices were unchanged during the month, vs. a 0.1% decrease in May, according to Labor Department estimates. Economists’ consensus had expected a 0.1% rise. Core prices, stripping out energy and food costs, were up 0.1% — below the 0.2% increase expected by consensus views.
The Federal Reserve reports June industrial production and capacity utilization estimates at 9:15 a.m. ET. At 10 a.m. ET, the Commerce Department reports May business inventories and the University of Michigan releases its preliminary reading on July consumer sentiment.
Dallas Federal Reserve Bank President Robert Kaplan speaks in Mexico City at 9:30 a.m. ET.
Overseas, markets across Asia ended the week on a positive note. Tokyo’s Nikkei 225 added 0.1% Friday, leaving it also with a 0.1% gain for the week. Hong Kong’s Hang Seng tacked on another 0.2% in Friday’s session, bringing its gain for the week to 4%.
Europe’s markets turned lower in afternoon trade. Frankfurt’s DAX dipped 0.2%, with London’s FTSE 100 down a fraction and the CAC-40 in Paris off 0.1%.