The major indexes closed lower Thursday, but trimmed most of their early losses as some major banks prepared for Friday the 13th earnings reports.
The Nasdaq was down as much as 1.2% but closed just 0.3% lower. Notably, the composite found support at the 5500 level. The S&P 500 fell 0.2% and the Dow Jones industrial average 0.3%. But small caps didn't fare as well, with the Russell 2000 ending 0.9% lower.
Volume fell across the board, unconfirmed numbers showed. While indexes pared losses, market breath was weak. Losers led winners by 3-to-2 on the NYSE and by more than 2-to-1 on the Nasdaq.
Metals and consumer stocks such as makers of leisure products were the worst performing in the stock market today. Health care stocks bounced, and fiber optics were the day's strongest.
A Piper Jaffray analyst gave bullish comments on data center technology firm Applied Optoelectronics (AAOI) that the analyst said also bode well for Finisar (FNSR). Finisar shares rose 4% in volume that was one of the heaviest in the stock market today. But the stock remains in a price correction.
Acacia Communications (ACIA) rose 3%. It too remains deep in a consolidation. Both stocks were hot growth stocks last summer, and Finisar kept rallying to a peak at 36.85 on Dec. 9.
On the IBD 50, Primerica (PRI) kept getting closer to a potential buy point at 73.15. The provider of insurance and other financial services has been crafting a well-sculpted flat base. It is one of the IBD 50 stocks closest to reaching a buy point.
On Friday, three big banks report earnings: JPMorgan (JPM), Wells Fargo (WFC) and Bank of America (BAC). They represent the first major financial companies to announce fourth-quarter results, and as such could set the tone for the rest of the sector's Q4 announcements.
JPMorgan and Bank of America have been trading flat for several weeks, while Wells Fargo has pulled back to test support at the 10-week moving average. A jump from that level would leave the stock in a follow-on buy area.
On the economic calendar Friday, retail sales and the producer price index for December are being announced at 8:30 a.m. ET, before the market opens. Business inventories and consumer sentiment reports are released at 10 a.m.
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