U.S. stock indexes reversed to mixed territory early Friday, despite GDP’s 4.1% pop in the second quarter, the strongest number since 2014.
The Nasdaq rallied 0.5% but then dropped to a 0.2% loss. The S&P 500 slipped 0.1%, while the Dow Jones industrial average added 0.1%. Small caps lagged as the S&P 600 fell 0.4%.
Volume dropped on both major exchanges vs. the same time Thursday.
Two oil stocks weighed on the Dow Jones industrial average. Exxon Mobil (XOM) beat on revenue but missed on earnings. Chevron (CVX) missed on both the top and bottom lines. Exxon dropped 4% but then trimmed the loss to 2.7%. Chevron fell 1.3% but reversed, cutting the loss to 0.4%.
Chipmaker Intel (INTC), another Dow component which reported after Thursday’s close, staggered 7% lower despite mostly favorable numbers. The blue chip topped the Street’s estimates on earnings and revenue, but Intel’s data center segment fell short of expectations. Bank of America downgraded the stock from buy to neutral.
Intel has been riding its 50-day line higher since October. The stock is up 25% from its October breakout but was up as much as 49% in early June. Intel is 16% off its high.
IBD’s Stock Market Today alerted Intel shareholders to a defensive sell signal June 18. At that time, the stock was trading 38% above a 38.55 buy point.
Among growth stocks, Amazon.com (AMZN) reported after Thursday’s close. Earnings were more than double expectations, but revenue fell shy of the consensus view. Company guidance was lower than expected. The stock pounded 3.5% higher in early action Friday.
