The Week In Review
The S&P 500 declined as much as 0.9% on Friday as follow-through selling and an effort to de-risk sent the broader market lower. However, steady buying interest throughout the afternoon, and a last-minute swarm of buying interest, lifted the S&P 500 to a gain of 0.1%.
The Nasdaq Composite and Russell 2000 also gained 0.1% apiece. The Dow Jones Industrial Average, however, lost 0.3%.
Most sectors were down in the early going amid a continuation from Thursday's narrative, which emphasized concerns about growth, trade matters, and disappointing earnings guidance. There was also a prevailing sense that the market was due for some consolidation, considering the extent of its rally and no news catalyst to support a continued advance.
The S&P 500 utilities sector (+0.5%) was a consistent leader throughout the day. Comeback performances from the consumer staples (+0.5%), information technology (+0.5%), and communication services (+0.4%) sectors helped underpin the rebound effort. Conversely, the cyclical energy (-0.7%), financial (-0.6%), and consumer discretionary (-0.5%) sectors underperformed.
Some buying interest may have been generated by a Reuters report, which quoted San Francisco Fed President Mary Daly as saying the central bank is debating whether quantitative easing should be reserved for emergencies or used more readily.
Amazon (AMZN 1588.22, -26.15) was a bit of a story stock, losing 1.6% amid news that CEO Jeff Bezos accused National Enquirer's publisher of blackmail. Its underperformance was a huge drag on the consumer discretionary space, which featured some notable post-earnings movers.
In earnings news, Toy maker Mattel (MAT 15.23, +2.87) surged 23.2% after it beat top and bottom-line estimates and provided a positive financial outlook for 2019. Goodyear Tire (GT 18.69, -1.86), however, fell 9.1%% after the company missed top and bottom-line estimates.
U.S. Treasuries edged higher, pushing yields lower across the curve. The 2-yr yield decreased one basis point to 2.46%, and the 10-yr yield decreased two basis points to 2.63%. The U.S. Dollar Index gained 0.1% to 96.63. WTI crude increased 0.1% to $52.76/bbl.
Investors did not receive any notable economic data on Friday and will not receive any reports on Monday, either.
- Russell 2000 +11.7% YTD
- Nasdaq Composite +10.0% YTD
- S&P 500 +8.0% YTD
- Dow Jones Industrial Average +7.6% YTD
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