Small cap stocks fell but held up relatively well Friday. But the rest of the stock market withered more, weighed down by the Turkey crisis and a sell-off in shares of Dow component Intel (INTC).
XIntel was the worst performer in the Dow Jones industrial average, falling 2.6% to 48.85. Caterpillar (CAT) wasn't far behind, down 1.9%. Financial stocks in the Dow like Goldman Sachs (GS), American Express (AXP) and JPMorgan (JPM) also lagged with losses of 1% or more.
Selling in Intel was fueled by negative comments from Goldman Sachs, which downgraded shares to sell with a 44 price target. Last month, Intel said the launch of its next-generation 10 nanometer chips will be released in late 2019. Advanced Micro Devices' (AMD) 7 nanometer chips will be out later this year.
The Dow ended with a loss of 0.8%, while the S&P 500 and Nasdaq composite gave back 0.7% each. Preliminary data showed volume on the NYSE and Nasdaq coming in slightly higher than Thursday's levels.
The Turkish lira plunged against the U.S. dollar after President Trump said he was doubling metal tariffs on Turkey. Andrew Brunson, a U.S. citizen, is being held in Turkey. He's accused of supporting a group blamed for an attempted coup in Turkey in 2016.
Investors bought bonds Friday, sending the 10-year Treasury yield lower by 5 basis points to 2.87%.
Small Cap Stocks Hold Up
Selling was muted in the small-cap arena as the Russell 2000 lost around 0.2%.
Inside the MarketSmith Growth 250, top-rated small cap stocks like Bottomline Technologies (EPAY), Funko (FNKO), SendGrid (SEND) and Alarm.com (ALRM) outperformed.
Meanwhile, Friday's session delivered another round of bullish earnings moves from high-quality growth stocks. IBD 50 component Trade Desk (TTD) soared 37%, helped by a big earnings beat and 54% jump in sales to $112.3 million.
Meanwhile, fellow IBD 50 firm Planet Fitness (PLNT) also shot higher on earnings, rising 6.5%. The stock's weekly chart shows a breakout from a flat base in April and then three pullbacks close to the 10-week moving average. The structure has the look of an ascending base pattern, but the pattern is usually seen when a stock is showing strength in a down or sideways market.
Match Group (MTCH), yet another IBD 50 stock, followed through after a bullish move Wednesday on earnings and a breakout Thursday. Shares were up another 3%. Despite a weekly gain of more than 30%, Match isn't extended yet from a conventional entry of 48.75.
Leaderboard name Five Below (FIVE) also outperformed, rising 1.6%. After a test of the 10-week moving average, Five Below is back above a prior 104.09 buy point.
Meanwhile, the MarketSmith pattern recognition tool identified a breakout in Urban Outfitters (URBN). It cleared a 48.34 buy point, marking its fifth straight advance, but it's been a low-volume move so far. Shares rose 1.6%.
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