Stock snapped higher at Friday’s open, as earnings news stirred busy early trade, oil prices ran higher and July durable goods data provided some positive economic news.
Retail stocks Gap (GPS), Foot Locker (FL) and Buckle (BKE) were in motion on earnings news. Tech names Veeva Systems (VEEV), Intuit (INTU), HP Inc. (HPQ) and Globant (GLOB) also reported. Caterpillar (CAT) led the Dow, while Autodesk (ADSK) spiked to the top of both the Nasdaq 100 and S&P 500 lists.
The Nasdaq Composite led, up 0.5% shortly after the open. The Dow Jones industrial average and the S&P 500 each climbed 0.3%. Foot Locker and Gap scored the deepest early losses among S&P 500 stocks.
Eyes turned from Washington, where negotiators wrapped up two days of trade talks on Thursday, to Jackson Hole, Wyo., where Federal Reserve Chairman Jerome Powell is scheduled to speak at 10 a.m. ET. Markets showed little reaction to July durable goods data, released by the Commerce Department at 8:30 a.m. ET. Orders fell 1.7% for the month, vs. a 0.7% gain in June and sharply below expectations for a 0.8% slip. Orders for core goods, minus aircraft and defense items, rose 1.4%, above June’s 0.6% gain and topping forecasts for a 0.5% increase.
Netflix Pops, Buckle Reverses, Autodesk Nails Breakout
Netflix jumped 2.3% after SunTrust Robinson Humphrey upgraded the stock to buy, from hold. The note also lowered the stock’s price target to 410, from 415. The note cited some suggestions of solid subscriber trends, and optimism toward growth in India. Netflix shares are rebounding after finding support at their 40-week moving average, tacking toward the stock’s strongest week since mid-June.
Among retail stocks, Gap dived 9%, Foot Locker toppled nearly 10% lower. Buckle reversed out of early gains to trade flat after reporting quarterly results. Friday’s early action left Buckle just below a 28.15 buy point in a cup-with-handle base.
On the tech side, HP Inc. dropped 3%, IBD 50 stock Veeva Systems surged 5%, and Intuit advanced 1.4% following their reports. Splunk (SPLK) and Autodesk scored huge gap up gains.
CAD design leader Autodesk spiked 11% after reporting its second-quarter earnings growth accelerated to 273%, while revenue jumped 22%. Management raised third -quarter and full-year revenue guidance to above consensus targets. Autodesk shares finished Thursday’s session just below a 143.04 buy point in a flat base.
Data management specialist Splunk also knocked out a 9% premarket gain. Its second-quarter earnings growth topped view, but revenue and operating margins beat by a wide margin, and management cranked up third-quarter and full-year revenue guidance to above consensus views. Splunk is low in a two-month cup base with a 121.74 buy point.
A Strong Week In China; WTI Oil Prices Jump
China’s markets ended a strong week in mixed trade Friday. The Shanghai Composite rose 0.2% Friday and ended the week up 2.2%. Hong Kong’s Hang Seng Index slipped 0.4% Friday to end the week with a 1.7% gain. In Japan, Tokyo’s Nikkei 225 surged 0.9%, taking a 1.5% advance in its first weekly increase in four weeks.
Europe’s markets traded higher in their afternoon session. The CAC-40 in Paris led with a 0.3% gain. Frankfurt’s DAX rose 0.1% and London’s FTSE 100 added 0.2%.
Oil prices rose, with West Texas Intermediate popped 2% higher, to above $69 per barrel. WTI is up 5% for the week as it tracks toward its first weekly advance since June. Oil prices could see some impact from weekly rig count data, due from Baker Hughes (BHGE) at 1 p.m. ET.
