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.
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.
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
-
Are COVID Shots Still Covered By Medicare?Getting the new COVID-19 vaccine covered by Medicare isn't as easy this year as it was in the past. Here's what you need to know before you take a trip to your pharmacy.
-
How Digital Platforms Are Changing the Way You Invest in GoldInvesting in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
S&P 500 Slips Ahead of Fed Week: Stock Market TodayAll eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market TodayWednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market TodayAnother down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market TodayUnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market TodayApple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
