U.S. stocks flat as NASDAQ completes 8th straight week of positive gains
Published Aug 19, 2016 04:37PM ET
The Dow, NASDAQ and S&P 500 all fell slightly on Friday
Investing.com -- U.S. stocks pared sharp losses on Friday, remaining near all-time record-highs amid wavering, volatile oil prices and diverging comments from key Federal Reserve policymakers on the possibility of a near-term interest rate hike.
The Dow Jones Industrial Average lost 45.13 or 0.24% to 18,552.57, while the S&P 500 Composite index inched down by 3.15 or 0.14% to 2,183.87, both falling short of a positive close in spite of a late rally. At session-lows, the Dow fell as much as 100 points. On the S&P 500, six of 10 sectors closed in the red as stocks in defensive Utilities and Telecommunications industries lagged. Stocks in the Technology, Industrials and Basic Materials sectors led, each gaining more than 0.10% on the session.
The NASDAQ Composite index, meanwhile, fell 1.77 or 0.03% to 5,238.38, amid declines in media and telecom stocks. Despite the slight losses, the NASDAQ completed its first 8-week winning streak since 2010.
Shares in Viacom B Inc (NASDAQ:VIAB) surged more than 1.5% to an intraday high of 44.16, amid reports of an impending settlement between chairman emeritus Sumner Redstone and CEO Philippe Dauman. As part of the settlement, Dauman could reportedly receive a severance package of as much $72 million, according to CNBC and other media reports. In addition, the two sides will end a protracted legal dispute and Dauman will reportedly be replaced by Tom Dooley as interim CEO through September.
The top performer on the Dow was Nike Inc (NYSE:NKE), which jumped 1.69 or 2.95% to 58.90. It came after the multinational athletic apparel giant agreed to form a supply-chain partnership with private equity firm Apollo Global Management. As part of the deal, the partnership agreed to acquire Pennsylvania-based apparel company New Holland, which maintains factories in two Central American countries. The worst performer was Wal-Mart Stores Inc (NYSE:WMT), which fell 1.49 or 2.01% to 72.81, amid heavy profit taking. On Thursday, Wal-Mart (NYSE:WMT) hit 1-year highs at 74.29 after achieving comparable store sales growth of 1.6% in the second quarter, representing its strongest quarterly gains in three years.
The biggest gainer on the NASDAQ was Applied Materials Inc (NASDAQ:AMAT), which surged 1.49 or 2.01% to 72.81. Shares in the Santa Clara, California-based semiconductor chip maker extended gains from Thursday's after-hours session after the company topped quarterly earnings forecasts amid a fresh record-high in new orders on the period. The worst performer was DISH Network Corporation (NASDAQ:DISH), which fell 1.13 or 2.19% to 50.40.
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The top performer on the S&P 500 was Deere & Company (NYSE:DE), which surged 10.38 or 13.849% to 87.32. John Deere shares popped in spite of soft earnings over its third quarter, due primarily to continued weakness in the global agricultural economy. Earlier this week, billionaire investors Warren Buffett and Bill Gates reduced their stakes in the farm equipment manufacturer ahead of the earnings release. Investors, however, focused more intently on the company's forward guidance, as Deere increased its full-year earnings outlook from $1.2 to $1.35 billion. The worst performer was DaVita HealthCare Partners Inc (NYSE:DVA), which fell 3.17 or 4.69% to 50.42.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 1,759-1,191 margin.
Written By: Investing.com
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