It was a choppy end to a down week for stocks as investors looked ahead to next week's critical inflation update.
Amid relatively bare economic and earnings calendars, today's price action was driven by single-stock moves, with notable upside in a few mega-cap names helping the Nasdaq Composite avoid a fifth straight loss.
At Friday's close, the Dow Jones Industrial Average was up 0.2% at 34,577, while the S&P 500 was 0.1% higher at 4,457. The Nasdaq, meanwhile, rose 0.1% to 13,761, its first win in five sessions. All three benchmarks closed in negative territory for the week.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Positive end-of-week returns for several of the biggest Nasdaq stocks buoyed the tech-heavy index. Notably, Apple (AAPL) stock, which has shed about $200 billion in market value this week on news China could widen its ban of iPhones to include state-owned companies and government-backed agencies, gained 0.4%.
Amazon.com (AMZN, +0.3%) and Microsoft (MSFT, +1.3%) – two other stocks with outsized weightings in the Nasdaq – also gained ground today.
RH stock spirals after earnings
Elsewhere, RH (RH) plunged 15.6% after the high-end furniture retailer that was previously known as Restoration Hardware reported earnings. In the second quarter, RH reported higher-than-expected earnings of $3.93 per share on $800 million in revenue.
However, the company forecast third-quarter sales below analysts' estimates amid continuing challenges in the luxury housing market and broader economy. The retail stock was a former member of the Berkshire Hathaway equity portfolio, though Warren Buffett and his team exited the stake in the first quarter of this year.
Market participants also kept an eye on rising oil prices, with U.S. crude futures climbing 0.7% to $87.51 per barrel, bringing their weekly gain to 2.3%. This gave a boost to energy stocks, with Marathon Petroleum (MRO, +2.3%) and Phillips 66 (PSX, +2.9%) among the day's biggest advancers.
Rising oil prices could impact inflation
Energy prices will feature prominently in next Wednesday morning's release of the August Consumer Price Index (CPI) report, says Douglas Porter, chief economist at BMO Capital Markets.
"We reckon that gasoline prices rose roughly 10% in seasonally adjusted terms in the month, which alone will bump up the CPI by four ticks," the economist says. "We look for overall prices to rise a meaty 0.6%, lifting the annual inflation rate to 3.6% (from 3.2%)." The core reading, which excludes volatile food and energy prices, should be "much more friendly," Porter adds.
Meanwhile, there are still a few stragglers left to report earnings, including Photoshop creator Adobe (ADBE). The tech stock has been red-hot this year – building on its impressive 20-year return – on optimism over the company's artificial intelligence (AI) initiatives.
Related content
-
M&A Is Why UnitedHealth Group Stock Is in of the 100,000% Return ClubUnitedHealth has given a master class in mergers and acquisitions over the years.
-
How GLP-1 Drugs Could Revolutionize RetirementGLP-1 drugs like Ozempic and Wegovy are already changing the way we age and manage chronic conditions.
-
How to Invest in the Nuclear RevolutionAccording to Energy Secretary Chris Wright, "The long-awaited American nuclear renaissance must launch during President Trump's administration."
-
How Amazon Stock Became a Member of the 100,000% Return ClubAmazon's wide moat is one reason it has generated a 100,000%-plus return for investors over the long haul.
-
Stock Market Today: It's Mostly Onward and Upward for EquitiesThe major U.S. equity indexes were mixed Friday but closed an eventful week for earnings and data modestly higher.
-
Stock Market Today: Stocks Pop on Time-Delayed TariffsAll three major U.S. equity indexes rallied to intraday highs following President Trump's latest trade moves.
-
Stock Market Today: Markets Turn Lower on Nasty Inflation SurpriseEquities sold off after a hot reading on consumer price inflation pushed back rate cuts to autumn or year-end.
-
Stock Market Today: Stocks Swing Lower as Inflation Fears RiseThe latest consumer sentiment data showed near-term inflation expectations rose to their highest level since November 2023.
-
Amazon Is the Worst Dow Stock After Earnings. Here's WhyAmazon stock is at the bottom of the Dow Friday as the e-commerce giant's soft outlook offsets a fourth-quarter beat. This is what you need to know.
-
Stock Market Today: Investors Respond to the Usual UncertaintyStocks surged late but the major indexes closed mixed as the search for market leadership continues.
