Market Recap: U.S. stocks dip, head for weekly decline
![Market Recap: U.S. stocks dip, head for weekly decline](https://ussnsimg.moomoo.com/6833194408823088394.jpg/bigmoo)
Hey moomooers, Here is the latest Market Recap for you.
Financials and energy are weighing down the S&P 500 index in Friday afternoon trading.
Stocks to watch: $State Street (STT.US)$, $Moderna (MRNA.US)$, $Charles Schwab (SCHW.US)$, $The Honest (HNST.US)$, and $iHeartMedia (IHRT.US)$.
Market Snapshot
Financials and energy are weighing down the S&P 500 index in Friday afternoon trading.
U.S. stocks were down Friday afternoon and heading for a weekly decline, as data showing a fall consumer sentiment overshadowed an earlier report on a sharp rise in retail sales, while corporate earnings reports remained mixed.
Federal Reserve Chairman Jerome Powell this week again reassured markets that a rise inflation was likely to be temporary, but higher prices may be behind the fall in consumer sentiment.
![Market Recap: U.S. stocks dip, head for weekly decline](https://ussnsimg.moomoo.com/4935763619639907724.png/bigmoo)
For the week, $Dow Jones Industrial Average (.DJI.US)$was back down 0.5%, threatening to snap a string of weekly gains; the $S&P 500 Index (.SPX.US)$is headed for a weekly decline of 0.9%, while the $Nasdaq Composite Index (.IXIC.US)$is looking at a weekly decline of 1.8%
What to drove the market?
A solid start to second-quarter earnings reports and strong June retail sales was being overshadowed on Friday by evidence of flagging sentiment, analysts said.
"Consumer sentiment's sharp decline seems to be overpowering strong earnings and the rise in retail sales," wrote Mike Loewengart, managing director, investment strategy at E-Trade Financial, in emailed comments to MarketWatch.
A preliminary reading of the University of Michigan's index of consumer sentiment fell to 80.8 in July from a final reading of 85.5 in June, notching the measure's lowest level since February. Economists expected a reading of 86.3, according to a survey by the Wall Street Journal.
What stocks to watch
$State Street (STT.US)$— The financial firm’s shares rose 2.9% after beating on the top and bottom line of its quarterly results. State Street reported earnings of $1.97 per share on revenue of $3.03 billion, while analysts expected earnings of $1.79 per share on revenue of $2.94 billion, according to Refinitiv.
$Moderna (MRNA.US)$– Shares of Moderna soared more than 10% on news that the pharmaceutical company would join the S&P 500 on Wednesday, July 21. Moderna will replace Alexion Pharmaceuticals, which is being acquired by AstraZeneca.
$Charles Schwab (SCHW.US)$— Shares of the online broker ticked about 2% lower after reporting its quarterly results. Schwab earned 70 cents per share, missing estimates by 1 cent, according to Refinitiv. The company made $4.53 billion in revenue, topping estimates of $4.46 billion. Schwab also showed a slowdown in new clients, which totaled 1.7 million in the second quarter after a record 3.2 million in the first quarter.
$The Honest (HNST.US)$— The maker of environmentally sustainable lifestyle products saw its stock jump 2.3% after Loop upgraded it to a buy from a hold after a recent pullback in shares. Retail demand is strong, Loop said, and any second quarter destocking-related weakness should be made up in the second half.
$iHeartMedia (IHRT.US)$— The media company’s stock climbed 1.7% higher after Goldman Sachs initiated coverage as a buy. Goldman also said iHeartMedia is well positioned to make the transition from legacy radio broadcasting to digital-first audio media.
$Dow Inc (DOW.US)$— The chemical stock dipped 3% after Bank of America downgraded Dow to underperform from neutral. The firm said in a note to clients that there was downside risk to the price of polyethylene in the U.S., which could take a bite out of the company’s stock price.
$Carnival (CCL.US)$, Norwegian Cruise Lines — Cruise lines dropped on Friday, with Carnival declining about 4.6% and Norwegian dropping more than 5%. The companies' shares fell despite positive news that Canada will allow cruise ships to resume operations in its waters starting Nov. 1, sooner than planned. Previously, the Canadian government extended its cruise ban until the end of February 2022. Norwegian and Carnival shares are both down double digits this month.
$Tencent Music (TME.US)$— Shares of the Chinese music streaming service dropped more than 5% after Morgan Stanley downgraded the stock to equal-weight from overweight. The Wall Street firm said rising regulatory issues in China will keep Tencent Music Entertainment from bouncing back after its rough first half of the year. The stock has fallen nearly 40% this year.
$Uber Technologies (UBER.US)$— The ride sharing company saw its stock rise 1% before pulling back slightly, after MKM named it a top pick, saying Uber finally has a “line-of-sight” for profitability and that it expects an upward re-rating on the stock.
Source: Dow Jones, CNBC
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Sg-Jin : If nasdaq drops below 30 day sma next week would be interesting to see what happens.
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