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Stocks End Mixed; Nautilus Bulks Up, Breaks Out To New High

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Stocks ended mixed Friday after Federal Reserve Chair Janet Yellen signaled that interest rates were set to go higher.

The Dow Jones industrial average slipped 0.3%, dragged down by Verizon (VZ) and McDonald's (MCD), and the S&P 500 lost 0.2%. The Nasdaq edged up 0.1%. Volume rose 22% on the NYSE and 8% on the Nasdaq compared to Thursday, according to preliminary data.

Yellen said early Friday that the case for an interest rate hike has "strengthened," while Fed Vice Chairman Stanley Fischer said a September increase is possible.

Fitness equipment maker Nautilus (NLS) gapped up to soar more than 7% to a new high in heavy volume, rising decisively past a 21.22 buy point of a 27-week consolidation. It will join the small-cap S&P 600 index after the close Sept. 1.

On the downside, computer networking stock Brocade Communications (BRCD) led the S&P 500 lower, plunging nearly 12% after its quarterly earnings report.

Retailers were among the stocks hardest hit on Friday.

Cosmetics retailer Ulta Beauty (ULTA) plunged 6% in heavy volume. Ulta announced late Thursday that Q2 profit rose 24% to $1.43 a share on a 22% increase in sales to $1.07 billion.

The results beat Wall Street forecasts, but Ulta's Q3 earnings forecast missed views. Ulta has enjoyed a big advance since it cleared a buy point in March, but it ended just below its 50-day moving average Friday.


IBD'S TAKE: A stocks that pierces its 50-day line in heavy volume after a big advance could be in trouble. It's important for investors to learn how to handle stocks that test this key support line.


Palo Alto Networks (PANW), Veeva Systems (VEEV), Ollie's Bargain Outlet (OLLI) and Salesforce.com (CRM) are among companies due to report quarterly earnings next week.

Economic data due next week include personal income and spending for July, the Institute for Supply Management's index of U.S. manufacturing for August, and nonfarm payrolls for August.