The stock market today gave up big early gains to reverse lower, but indexes managed to pare losses. Apple and Starbucks were big movers on earnings.
XStocks turned south as enthusiasm regarding a U.S. trade deal with China faded. The Nasdaq composite slumped 1%, the S&P 500 slid 0.6% and the Dow Jones industrial average fell 0.4%. Small caps bucked the decline as the Russell 2000 finished with a 0.2% gain. Volume was lower on the NYSE and higher on the Nasdaq, according to preliminary data.
Despite Friday's fade to losses, the major indexes finished with solid weekly gains in the stock market today. The Nasdaq rose 2.5% to snap a four-week losing streak, the S&P 500 advanced 2.3% and the Dow industrials also added 2.3%.
Apple (AAPL), down 7% in heavy volume, weighed on all three indexes. The iPhone maker was by far the biggest loser on the Dow. It's now at its lowest point since early August. The stock is 11% off its high and remains 7% above its 200-day moving average. It was a sharp drop, but Apple could continue work on a flat base if it finds a bottom here. The correction from the left side high to the bottom of the base is 12%.
After the close Thursday, the iPhone maker reported fiscal Q4 results that beat views. But it offered lower-than-expected sales guidance for the current quarter, which resulted in a flurry of analyst price target cuts.
Intel (INTC) and Pfizer (PFE), down about 2% each, also weighed on the blue chip index. Chevron (CVX) and Exxon Mobil (XOM) were among the top Dow gainers. Chevron rose 3.3% and Exxon added 1.2% as both oil giants reported strong Q3 results.
Stock Market Today: Networking Leads
Homebuilders, food and software stocks led the downside among sector losers. But networking, solar and home furnishings retailers outperformed.
In the networking space, Arista Networks (ANET) surged more than 6% to nearly retake its 50-day line. Volume was two times higher than normal. Shares popped 5% Thursday. Late that day, Arista reported adjusted Q3 profit and revenue that beat estimates. Its Q4 guidance also topped views.
Starbucks (SBUX), up 10% in brisk trade, was a big earnings winner. Shares soared past a 61.04 buy point after the coffee chain delivered fiscal Q4 sales and profit that topped views. It saw U.S. same-store sales rise 4%, also above forecasts. Starbucks was added to IBD's Leaderboard list of top-performing stocks.
In the IBD 50, Control4 (CTRL) was the biggest loser with a 17% plunge. Health Insurance Innovations (HIIQ), down 9%, and Apple were also sharp decliners. Illumina (ILMN), Alarm.com (ALRM) and Innoviva (INVA), up more than 3% each, were the top gainers.
Ulta Beauty (ULTA) rose 3% as it shapes a flat base with a potential 290.40 buy point. The beauty store chain, featured in Friday's IBD Stock Analysis column, is expected to extend its double-digit profit and sales growth streak when it reports Q3 results later this month. Ulta is also a member of Leaderboard.
The Innovator IBD 50 ETF (FFTY) fell 1% to end its three-session advance.
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