The S&P 500 index has squeezed out three record days in a row from Tuesday through Thursday, but investors found negatives in a number of areas on Friday that wiped out all the gains made during the week. The S&P 500 had been flirting with 2,000 all week, but failed to ultimately make it there. The index was down 9.6 points for the day (-0.48%) ending at 1,978.34 for the week, which was approximately where it had started for the week.
The Dow Jones Industrial Average saw its average dip below the key 17,000 mark once again as a series of disappointing earnings came in on Friday. The result was the largest weekly decline in a month and a half, leaving it down 123.23 points (-0.72%) for the day at 16,960.57. For the entire week, the Dow fell 0.8%, a decline it hadn’t seen since the middle of June.
The NASDAQ Composite closed 22.5 points lower on Friday (-0.50%) at 4,449.56. This actually was a small gain overall for the week of 0.4%, buy still far below the record high of over 5,000 achieved during the dotcom bubble.
Amazon set the tone for the day by disappointing investors by posting a second-quarter loss in excess of what investors had expected. The stock was down almost 10% for the day, and it was a big contributor in the S&P 500 failing to end the week at another record high. Visa was another disappointment on Friday, losing 3.8% of its value when it announced a smaller annual growth forecast.
One bright spot on the day was El Pollo Loco. On the first day of trading, the stock rose 60% in value to $24 a share, well above the $15 a share price of the initial public offering.
The week ahead offers a variety of economic news which will determine whether or not the markets can rebound from Friday and look to reach record highs again. The monthly jobs report will be released, and there could be news out of the Federal Open Market Committee meeting which could determine the direction stocks for the week.
(Photo courtesy of George Rex)