Nasdaq 100, Dow Jones, S&P 500: Wall Street Mixed after Week of Disappointing Earnings Results

Hightlights

• Stocks mixed after week of disappointing performances
• Economic activity stronger than expected in April
• Some companies beat earnings, but profit reports fail to provide a boost

Overview

The major U.S. stock indexes are trading mixed on Friday, shortly after the cash market opening. Investors are evaluating a week’s worth of earnings reports and worrying about the possibility of unsatisfactory profits. Unfortunately, all of the primary indices are currently on track to end the week with losses.

At 14:30 GMT, the blue chip Dow Jones Industrial Average is trading 33835.69, up 49.07 or +0.15%. The benchmark S&P 500 Index is at 4131.32, up 1.53 or +0.04% and the tech-weighted NASDAQ 100 is at 12047.26, down 12.29 or -0.10%.

US Stock Markets on Track for Worst Weekly Performance Since March

The Dow and S&P 500 are on track for their worst weekly performances since March, while the Nasdaq has seen the biggest losses, down 1.1%. The Federal Reserve has raised rates substantially over the last year, and is expected to hike them again in May, leading to concerns about a restrictive monetary policy. While many companies have beaten earnings expectations, overall profit reports failed to provide a boost, with some investors fearing an earnings drop looms with a likely recession on the horizon. On the positive side, 76% of S&P 500 companies reporting earnings so far have beaten analyst EPS estimates.

US PMI Economic Activity in April Surpasses Expectations

On Friday, flash readings indicated that economic activity in April exceeded expectations in services and manufacturing. The S&P Global flash services index came in at 53.7, surpassing the Dow Jones estimate of 52, while the manufacturing index registered a 50.4 reading, better than the expected 49. The S&P U.S. PMI Composite Output Index was at an 11-month high of 53.5, with the services index hitting a 12-month high and the manufacturing number being the best in six months. A reading of 50 is the threshold between expansion and contraction in the purchase manager indexes.

Procter & Gamble, CSX Corporation, ContextLogic Higher in Early Trade

Before the opening bell on Friday, several stocks saw significant movement, including Procter & Gamble, CSX Corporation, and ContextLogic. Procter & Gamble’s shares rose by about 2.3% in premarket trading following the company’s strong earnings report, which exceeded Wall Street’s estimates, and the company’s increased forecast for organic sales growth for fiscal 2023. CSX Corporation’s shares climbed 3.8% after reporting better-than-expected first-quarter results. Meanwhile, ContextLogic’s shares surged by 19% in premarket trading after announcing a $50 million share repurchase program.

For a look at all of today’s economic events, check out our economic calendar.