Wall Street mixed as chip rout extends
SPY•U.S. stocks were mixed early Friday as chip stocks extended their declines: the Nasdaq fell, the S&P 500 was near flat and the Dow rose. The semiconductor index was on track for an eighth consecutive decline and a 9.7% weekly loss.
1. Stocks diverge
Wall Street opened Friday mixed, with weakness in chip stocks weighing on the Nasdaq while the Dow advanced and the S&P 500 hovered near unchanged. The Nasdaq and S&P 500 were headed for weekly losses, while the Dow was poised to finish above the previous Friday’s level.
2. Earnings and inflation
The semiconductor index was on track for its eighth consecutive decline, with a weekly loss of 9.7%. Among S&P 500 sectors, materials were strongest and technology weakest. Of the 45 S&P 500 companies that had reported third-quarter results, 84% beat estimates; analysts expected aggregate earnings growth of 30.7% year over year. Import and export prices showed energy price pressures feeding into core inflation data.
