April Webinar RegistrationApril Webinar Registration


Stocks Open Mixed As Trump Attacks Fed; Microsoft Lifts Nasdaq

Stocks opened mixed Friday as strong moves by Microsoft (MSFT) and Intuitive Surgical (ISRG) helped bolster tech stocks, while an uptick in trade war rhetoric dragged on overall action.

X

Microsoft and Intuitive Surgical led Friday's early upside, with apparel maker VF (VFC) and chemicals producer Celanese (CE) also rising on strong June-quarter results. Chipmaker Skyworks Solutions (SWKS) and footwear brand Skechers (SKX) took some of the hardest early hits.

Microsoft and Intuitive Surgical helped hoist the Nasdaq composite to an early 0.2% gain. Microsoft had less impact on the Dow and S&P 500, which slipped 0.3% and 0.1%, respectively.

Trump Beefs Up Attacks On China, EU; European Stocks Slide

President Trump spun up an early batch of attacks, with tweets accusing China and the European Union of manipulating their currencies. He also reiterated his earlier frustration that the Fed was raising rates and slowing U.S. economic performance. Friday's tweets added to concerns fanned late Thursday when the President said he was fully prepared to impose tariffs across the entire schedule of $505 billion in China-made goods imported to the U.S. each year. Those threats were made in a CNBC interview aired Friday morning.

Automakers led stocks lower in Europe, as amped up trade rhetoric and the threat of U.S. auto tariffs weighed. Frankfurt's DAX dived 1.4%. The CAC-40 in Paris tumbled 1.1% and London's FTSE 100 shed 0.4%, in afternoon trade

Stocks in China ended the week on a positive note. Markets sold off early as the yuan dived to a one-year low. But the currency's dive, as well as the stock markets then reversed. Hong Kong's Hang Seng Index ended 0.8% higher, finishing down 1% for the week. The Shanghai Composite rallied 2.1%, ending a five-day decline and closing the week essentially flat.

In Japan, Tokyo's Nikkei 225 slipped 0.3% as the yen strengthened. That left the index up 0.4% in a second straight weekly gain and back above its 50-day moving average.

Microsoft, Intuitive, VF Poised For New Highs

Microsoft powered up 2.7% in early trade after reporting late Thursday that its cloud computing services segment drove Q2 results well above consensus targets. The gap up move sent shares to a new high, and up 25% year-to-date.

IBD 50 stock Intuitive Surgical jumped 2.5% higher after reporting late Thursday that its second-quarter earnings surged 38%, sales rose 20%, to well past analyst projections. The Sunnyvale, Calif. company shipped 220 da Vinci robotic surgical systems during the quarter, nearly a third higher than year-ago shipments. Shares hit a new high, and were extended after clearing a 473.89 flat-base buy point in June.

VF zipped up an early 3.5% gain. The maker of North Face, Wrangler and Timberland footwear and apparel brands reported a 48% EPS gain and a 23% revenue gain, vs. views for a 13% decline in sales. Management also hoisted its full-year revenue outlook to above the consensus target. VF had pulled back to test 10-week support after clearing an 83.03 buy point in early June. Shares are extended 11% above that entry.

Texas-based chemicals maker Celanese climbed 3.2% at the open. That hoisted shares back above support at their 10-week moving average and less than 3% of a 118.50 flat-base buy point. Celanese reported a 62% earnings gain and a 22% rise in revenue for the quarter, well above expectations.

Skyworks Topples; Skechers Misses By A Mile

Skyworks Solutions veered more than 4% lower. The Apple (AAPL) chip supplier reported fiscal third-quarter earnings growth of just 4%, while sales slipped 1%. Earnings were above views, while sales were below analyst consensus targets. But management hoisted current-quarter guidance for both numbers above consensus estimates. The stock was up 19% from a May low, attempting to climb the right side of a four-month consolidation.

Skechers collapsed 27% after missing analysts' second-quarter earnings targets by a wide margin. Revenue growth was flat, despite a 25% gain in international wholesale sales — to 52% of total company revenue for the quarter. Management lowered its Q3 guidance to well below consensus views. Skechers had been attempting to muster a comeback within a deep, three-month consolidation.

Investment manager State Street (STT) tumbled almost 8%, after reporting a broad Q2 earnings miss and announcing it would acquire Charles River Development for $2.6 billion in cash. State Street shares are trading below critical levels of support within a six-month consolidation.

Schlumberger Edges Up, Baker Hughes Slips: Oil Prices Rise

Oilfield services giant Schlumberger (SLB) added 1.5% after reporting second-quarter results in line with analyst estimates.

Baker Hughes (BHGE), General Electric's (GE) oilfield services partnership, dropped 0.5% after its second-quarter report. Revenue and earnings growth missed analyst expectations for the quarter.

Oil prices rose, with West Texas Intermediate up 0.5% to just below $70 a barrel. That put prices down less than 2% for the week, and 7% below its July 3 high, as oil aims for its third straight weekly decline. Baker Hughes releases its weekly rig count survey at 1 p.m. ET.

Get instant access to more trading ideas, exclusive stock lists and IBD proprietary ratings for only $5.

RELATED: 

The Big Picture: Small Caps Stay Positive; Trade-War Worries Rise

Dow Jones Futures Fall On New Trump Trade War Threat Vs. China

Microsoft Cloud Services Drive June-Quarter Sales, Earnings Beat

These 5 Top Stocks Are Setting Up Buy Points From This Bullish Base

IBD Stock Of The Day: 98 Composite Rating Stock Is Just Below Buy Point