Stocks were choppy Friday as investors sifted through several economic reports and looked ahead to a key inflation update due next Friday. But while the main indexes closed mixed today, all three managed weekly wins.
Today's economic calendar doesn't hold a candle to next week's busy lineup, but there were a few noteworthy reports. Among them was an update from the National Association of Realtors that showed sales of previously owned homes fell 0.7% month-to-month in May as the median existing-sales home price reached a record high of $419,300. Year-over-year, existing home sales were down 2.8%.
Additionally, data from S&P Global showed business activity in the U.S. grew at its fastest pace in more than two years in June, while both input and selling price inflation slowed. "Historical comparisons indicate that the latest decline [in selling price inflation] brings the survey's price gauge into line with the Fed's 2% inflation target," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
The next major economic event occurs one week from today when the May Personal Consumption and Expenditures (PCE) Price Index will be released. This is the Fed's preferred measure of inflation that tracks consumer spending.
Nike upgraded ahead of earnings
In single-stock news, Nike (NKE) gained 1.6% after the Dow Jones stock was upgraded ahead of its turn on the earnings calendar next Thursday. Oppenheimer analyst Brian Nagel lifted his rating on NKE to Outperform (Buy) from Perform (Hold) and reinstated it as a "top mega-cap pick," saying the internal and external challenges Nike has faced in recent quarters are now priced into the shares.
As a result, NKE is "poised to rebound gradually, as efforts on the part of senior leadership to refocus on product innovation and brand-building take hold," Nagel adds.
Palantir downgraded to Sell after red-hot rally
On the negative side of the ledger, Palantir Technologies (PLTR) slumped 6.8% after Monness, Crespi, Hardt analyst Brian White downgraded the data analytics firm to Sell from Neutral (Hold). The shares have surged nearly 40% this year on excitement surrounding the company's artificial intelligence (AI) initiatives, but White says this rally has taken PLTR too far, too fast.
"Palantir's stock was already rich upon entering 2024," White wrote in a note to clients, adding that its "valuation has now reached a gluttonous extreme." The analyst also set his price target on the AI stock at $20, more than 16% below current levels.
Nvidia retreat continues
Nvidia (NVDA) was another notable decliner Friday, with the chipmaker falling 3.2%. Shares finished with a weekly loss of 4.1%, with NVDA losing $134 billion in market value along the way. To put this figure in perspective, it's roughly equivalent to the entire market cap of fellow semiconductor stock Intel (INTC, -1.5%).
As for the main indexes, the Nasdaq Composite slipped 0.2% to 17,689, the S&P 500 shed 0.2% to 5,464, and the Dow Jones Industrial Average closed marginally higher at 39,150.
Related content
- What Chipotle Stock's 50-for-1 Split Means for Investors
- Adobe Sued By FTC Over Hidden Fees, Cancellation Issues
- Stock Market Trading Hours: What Time Is the Stock Market Open Today?
-
The Ultimate Cruise Packing List for RetireesReady to set sail on your dream cruise? Here’s a no-fuss packing list tailored for older travelers to keep your trip stress-free.
-
Extended payment plans can help ease the sting of a big-ticket purchase. But beware of costly missteps that can add to your price.Don't Make These 'Buy Now, Pay Later' Mistakes
-
I'm a Real Estate Investing Pro: This 1031 Exchange Strategy Can Triple Your Cash FlowSavvy investors can use 1031 exchanges to unlock value by moving capital across markets in a play called geographic arbitrage. These tax implications can make or break the strategy.
-
I'm an Insurance Pro: Everyone Needs to Prepare for Earthquakes, Even if You Don't Live Near a Fault LineHere are my tips for what to do before, during and after an earthquake. The more prepared you are, the more you'll be able to keep your wits about you if it happens.
-
Stocks Retreat as Shutdown Continues: Stock Market TodayWhile the main indexes closed lower today, Delta and PepsiCo gained ground on encouraging earnings reports.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You WishYour will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) ContributionsMissing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market TodayTech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts SayRate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out OnMost large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
