Stocks opened comfortably higher Friday, but lost steam as the session wore on. Amid an empty economic calendar, attention was focused on the latest batch of earnings reports and a continued win streak for the Dow Jones Industrial Average.
American Express (AXP) was one of the most notable earnings movers today, with the Dow stock slumping 3.9% after its Q2 results. Drilling down on the numbers, the credit card company reported higher-than-expected earnings of $2.89 per share, though revenue of $15.1 billion fell short of estimates.
Particularly noteworthy were comments from American Express CEO Steve Squeri, who said in the company's earnings call that "cardmembers' spending hit another all-time high in the quarter." Translation: The consumer remains resilient even as the Federal Reserve tries to bring down inflation by slowing the economy.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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.
CSX (CSX) was another post-earning decliner, with the industrial stock falling 3.7% after its quarterly report. The railroad operator said both earnings and revenue were down on a year-over-year basis in its second quarter, though the 49 cents per share and $3.7 billion it reported matched analysts' estimates.
Tech stocks decline ahead of Nasdaq-100 rebalancing
Meanwhile, several tech stocks including Apple (AAPL, -0.6%) and Nvidia (NVDA, -2.7%) declined ahead of Monday's major rebalancing of the Nasdaq-100 Index. The Nasdaq offshoot tracks 100 of the largest and most actively traded non-financial stocks listed on the Nasdaq stock exchange. This year's mega-cap tech rally has resulted in oversized weightings in a handful of stocks, and the rebalancing is needed to bring them back in line with the index's methodology.
A special Nasdaq-100 rebalancing is rare and last occurred in 2011, says David Kostin, chief economist at Goldman Sachs. Apple and Microsoft (MSFT, -0.9%) will have the biggest reductions in weightings, Kostin adds, while semiconductor stock Broadcom (AVGO, +1.0%) will see the largest increase.
At the close, the Dow was up marginally at 35,227, eking out a 10th straight win. The S&P 500 also finished with a fractional gain at 4,536, while the Nasdaq Composite slipped 0.2% to 14,032.
Big Tech earnings, Fed meeting on deck
So what's in store for next week? It will be a busy one, that's for sure. A jam-packed earnings calendar will certainly keep investors on their toes, particularly as Big Tech results start to roll in. Among the many notable names set to report is Microsoft, which has been one of the best AI stocks so far this year.
Additionally, the next Fed meeting will kick off Tuesday, with the central bank's monetary policy announcement due out Wednesday afternoon. Futures traders are pricing in a 99.8% chance the Fed will hike interest rates by a quarter-percentage point next week, according to CME Group, so all eyes will be looking for hints as to whether this will be the end of rate hikes – or if another is expected later this year.
In his press conference, which will occur after the policy statement, Fed Chair Jerome Powell "is likely to emphasize that further evidence is needed to have confidence inflation will be tamed," and that more tightening is needed, says Matthew Luzzetti, chief economist at Deutsche Bank. However, with the July and August consumer price index (CPI) and jobs reports due out between now and the September Fed meeting, Powell is unlikely to give strong guidance on the potential for more rate hikes. "Data dependency will remain a key theme for the Chair," Luzzetti says.
Related Content
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
Dow Dives 797 Points as Government Opens: Stock Market Today
The process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are five we like.
-
Dow Climbs 327 Points, Crosses 48,000: Stock Market TodayMarkets are pricing the end of the longest government shutdown in history – and another solid set of quarterly earnings.
-
Dow Climbs 559 Points to Hit a New High: Stock Market TodayThe rotation out of tech stocks resumed Tuesday, with buying seen in more defensive corners of the market.
-
Risk Is On Again, Dow Jumps 381 Points: Stock Market TodayThe stock market started the week strong on signs the government shutdown could soon be over.
-
Risk Is Off Again, Dow Falls 397 Points: Stock Market TodayMarket participants are weighing still-solid earnings against both expectations and an increasingly opaque economic picture.
-
Stocks Retreat as Bubble Worries Ramp Up: Stock Market TodayValuation concerns took hold on Wall Street today, sending Palantir and its fellow tech stocks lower.
-
Amazon Surge Sends S&P 500, Nasdaq Higher to Start November: Stock Market TodayAmazon inked a $38 billion cloud deal with OpenAI, which sent the stock to the top of the Dow Jones on Monday.
