The latest session in the US benchmark equity indexes concluded with mixed results as investors assessed the latest corporate earnings reports alongside economic indicators. The Dow Jones Industrial Average experienced a decrease of 0.6%, closing at 42,114.4. In contrast, the Nasdaq Composite recorded an increase of 0.6%, reaching 18,518.6.
The S&P 500 maintained basically the same level, slightly shifting to 5,808.1. Among the sectors, utilities suffered the most significant declines, while communication services took the lead in gains. Taking a broader view over the week, the Dow faced a setback of 2.7%, while the S&P 500 decreased by 1%.
Conversely, the Nasdaq managed to edge up by 0.2%. Delving into specific company performances, Mohawk Industries ($MHK) saw its shares plummet nearly 14%, marking the largest decline in the S&P 500. This drop followed the company’s late Thursday announcement regarding a fourth-quarter earnings outlook that fell significantly below Wall Street’s expectations. HCA Healthcare ($HCA) also reported third-quarter earnings that did not meet market forecasts, largely due to disruptions caused by Hurricane Helene impacting some of its facilities.
The company anticipates further negative effects from hurricane-related challenges in the ongoing quarter. Consequently, HCA Healthcare's stock tumbled by 8.9%, positioning it as the third-worst performer on the S&P 500 for the day. On the Dow, McDonald's ($MCD) faced notable pressure, with shares declining by 3%.
This reaction came after US health authorities revealed that the number of E. coli cases potentially associated with the fast-food chain's Quarter Pounder hamburgers rose to 75 across 13 states. They also indicated that the actual number of affected individuals might be "much higher." In a dramatic turn, Capri ($CPRI) shares plummeted by 49% on Friday following a court ruling that temporarily obstructed the luxury fashion company’s proposed acquisition by Tapestry ($TPR), the parent company of Coach and Kate Spade.
In contrast, Tapestry’s shares surged by 14%, making it the top gainer on the S&P 500 during this trading session. Deckers Outdoor ($DECK) emerged as a strong performer on the S&P 500, experiencing an 11% increase after exceeding fiscal second-quarter expectations announced late Thursday. From a macroeconomic perspective, US durable goods orders fell in September, primarily due to sharp decreases in the defense and civilian aircraft sectors, as evidenced by government data.
BMO articulated in a report that "Pop the hood and the September durable goods report reveals encouraging signs of life away from the gloom of nondefense aircraft orders." This is significant, as numerous months of stark declines in Boeing ($BA) orders have led to a staggering 43.9% drop in nondefense aircraft orders from the prior year. Consumer sentiment across the US saw an improvement in October, reaching its highest level since April.
Meanwhile, data from the University of Michigan's Surveys of Consumers indicated a softening of long-term inflation expectations. Additionally, West Texas Intermediate crude oil prices increased by 2%, with the barrel closing at $71.6 on Friday. Gold also saw a modest rise of 0.3%, setting the price at $2,756.10 per troy ounce, while silver remained nearly unchanged at $33.8 per ounce..