In afternoon trade Friday, the Nasdaq felt the weight of Federal Reserve Chair Kevin Warsh concerns over inflation at the Fed's annual symposium in Jackson Hole, Wyo. Warsh's hawkish stance drove yields higher. Meanwhile, Marvell Technology (MRVL) tumbled on the stock market today.
In afternoon trading, the Dow Jones Industrial Average inched downward but was near the flat line, while the S&P 500 dipped 0.2% and the Nasdaq sank 0.4%. The Russell 2000 small-cap index lagged with a decline of 1.2% in Friday's stock market trading. The Russell 2000 was weighed down by sell-offs in bitcoin-related names like Mara Holdings (MARA), Bit Digital (BTBT) and Riot Platforms (RIOT). Losses ranged from 9% to 10%. Rising yields also pressured small caps.
Warsh said the Fed may not be done fighting inflation and that financial conditions don't look too restrictive, meaning that money and credit are still relatively easy to come by. Warsh assured financial markets that he's focused on inflation and the Fed's 2% target amid another core reading above 3% and generally strong U.S. economic data.
The 10-year Treasury yield strengthened to 4.73% Friday, up six basis points. West Texas Intermediate crude oil futures slipped near $83.40 a barrel.
Stock Market Today: Marvell Tumbles
Among semiconductors, Marvell Technology (MRVL) tumbled 10% after the data center name delivered a narrow beat for its third quarter. Profits of 94 cents per share exceeded views by 1 cent while sales of $2.74 billion edged past analyst forecasts of $2.72 billion.
Shares fell below their 50-day moving average.
1:38 p.m. ET
Techs, Bank Of America Get Support
The Dow barely budged Friday but other than Nvidia — which dropped more than 4% — other technology index members like Salesforce, Amazon.com (AMZN), Microsoft (MSFT), Apple (AAPL) and Google-parent Alphabet (GOOGL) all showed gains north of 1.5%.
Inside the MarketSurge Growth 250, Bank of America (BAC) rallied nearly 2% as buyers came in and supported the stock at the 50-day moving average. The stock has been on a strong uptrend since clearing a 55.40 buy point on June 12.
While it was a mostly a positive week of earnings in the technology sector, the coming week has several high-profit reports due in the AI infrastructure space. Results from Dell Technologies (DELL) will be out Tuesday after the close, along with security software leader Palo Alto Networks (PANW).
Late Wednesday, Hewlett Packard Enterprise (HPE), NetApp (NTAP), Snowflake (SNOW) and Broadcom (AVGO) are due.
12:24 p.m. ET
Staffing Firms Rise
Staffing firms continue to outperform. Korn Ferry (KFY) jumped more than 3% to an all-time high. The stock broke out of a cup-with-handle base during the week ended July 17.
Group peer First Advantage (FA) has been another strong performer in the group. Shares rallied nearly 2% as the stock holds support at its 50-day moving average.
Small cap Kforce (KFRC) showed bullish technical action by reversing higher above its 21-day exponential moving average. Shares picked up 1%.
After Thursday's breakout, enterprise software giant ServiceNow (NOW) followed through with a 3% gain. It was one of the top gainers in the S&P 500, along with insurance stocks like Arthur J. Gallagher (AJG), Brown & Brown (BRO) and Aon (AON).
Amazon.com (AMZN) picked up steam in the Nasdaq 100, rising 4%. It also showed bullish action by powering higher above its short-term moving averages. The renewed strength comes after Amazon stopped just short of a test of its 10-week moving average.
11:33 a.m. ET
Software On The Move
Several software stocks were off to strong starts again after the iShares Expanded Tech-Software Sector ETF (IGV) jumped nearly 8% Thursday. Early Friday, the fund edged lower by 0.4%.
In the Nasdaq-100 index, Workday (WDAY), which reversed higher above its 10-day moving average, shot up nearly 5%. The catalyst was a robust earnings report, although its subscription outlook only met expectations.
Microsoft (MSFT) staged a breakout of its own, rising 2% and clearing a 513.73 entry. It's been a top performer since soaring more than 15% on July 30 after reporting strong earnings.
10:19 a.m. ET
Dow Jones Index Movers
Early gainers in the Dow Jones included Salesforce (CRM), which extended gains after Thursday's earnings surge, rising nearly 3%.
AppLovin (APP), Airbnb (ABNB) and DoorDash (DASH) led the Nasdaq 100 with gains ranging from 1.5% to 3%.
9:45 a.m. ET
Stock Market Today: Early Movers
Database software firm Elastic (ESTC) shot up nearly 22%, hitting a 52-week high, blasting out of an eight-month base. Payments company Affirm (AFRM) leaped nearly 13%, clearing an 86.80 buy point. Both delivered beat-and-raise earnings reports.
Marvell Technology (MRVL), Rubrik (RBRK) and SentinelOne (S) slumped despite earnings beats. AI chipmaker Marvell undercut its 50-day line.
PayPal (PYPL) tumbled roughly 12% after private equity firm Advent and privately held payments firm Stripe reportedly gave up their $50 billion pursuit of the digital payments pioneer.
8:55 a.m. ET
Bitcoin, Gold Waver Before Warsh
Bitcoin traded near $79,400 after rising to $79,929.78 as of Thursday afternoon. Gold futures dipped 0.4% early Friday, but copper futures climbed 0.6%, and silver gained 1.4%.
The prices of bitcoin and metals have rallied in recent weeks as Treasury Department moves and plans sent the U.S. dollar tumbling. The greenback has crept higher in recent sessions, though.
8:13 a.m. ET
Stock Market Today: Big Speech For Fed's Warsh
Fed chief Kevin Warsh will give a much-anticipated speech at the Jackson Hole monetary symposium at 10 a.m. ET. Warsh dislikes giving forecasts, so he may not offer many hints. Since taking the helm, Warsh has voiced strong support for "price stability" but has not pushed for a rate hike. At the July meeting, three policymakers voted for an increase.
Markets now see a one-in-three chance of a Sept. 16 hike, down from about 60% just after the July 28-29 meeting. But there's a 53% chance of a late October increase.
One question to ponder is whether Warsh will comment on Treasury Secretary Scott Bessent's efforts to curb long-term Treasury yields.
Rubrik, Marvell, Elastic, Affirm Are Earnings Movers
Rubrik, Marvell, Elastic and Affirm beat earnings views late Thursday, but the stocks diverged.
Shares of Rubrik lost 5% in premarket trade despite strong earnings and guidance. The cybersecurity stock had surged 11% in Thursday's session, hitting a new high, in reaction to strong results from peers CrowdStrike (CRWD) and Okta (OKTA).
Marvell sank 8%, signaling a move below its 50-day line, after narrowly topping Wall Street views. On Thursday, the custom artificial intelligence chipmaker reversed lower after briefly testing an early entry.
Elastic skyrocketed more than 20% on its beat-and-raise report. The database software maker is set to hit a 52-week high, vaulting above a handle from an eight-month base.
Affirm stock bolted 13% higher to 88 on a bullish outlook, surging off the 50-day line. The buy now, pay later fintech has an 86.80 flat-base buy point.
Stock Market Today: PayPal Dives On Buyout Buzzkill
An Advent-Stripe consortium has dropped efforts to buy digital payments giant PayPal (PYPL), Bloomberg reported, citing sources. Advent and Stripe are both privately held.
PayPal stock plummeted more than 16% to near 51, signaling a move below its 50-day moving average and testing its 200-day line. Shares closed at 47.37 on July 14, just before the initial takeover buzz, and reached an intraday high of 62.73 on Aug. 20.
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