The stock market moved lower on Friday, but pared back losses after shares of Apple, Amazon and Facebook soared following better-than-expected second quarter earnings results.
The Dow Jones Industrial Average was down 0.2%, over 50 points, on Friday, while the S&P 500 rose 0.1% and the tech-heavy Nasdaq Composite gained 0.9%.
Three of the biggest U.S. tech companies—Apple, Amazon and Facebook—reported earnings and revenue that crushed Wall Street expectations late on Thursday, sending their stocks higher.
While shares of Big Tech companies are among the best-performing stocks so far this year, there are rising concerns on Wall Street that heavy market concentration in this handful of big names could pose downside risks to the market.
Consumer sentiment fell to 72.5 in July—down from 78.1 last month—amid the resurgence in new coronavirus cases across the country, according to data from the University of Michigan.
Shares of companies that would benefit from a reopening of the economy—including airlines, cruise stocks, banks and some retailers—moved lower again on Friday.
Meanwhile, shares of oil giant Chevron plunged 4% after reporting a quarterly loss of $8.3 billion amid “significantly reduced demand” during the pandemic.
“These earnings from big tech and communication names are simply amazing,” says Ryan Detrick, chief investment strategist for LPL Financial. “Yes, estimates were low and we all assumed they would beat, but this is another sign that the strong have only gotten stronger.”
Gold prices topped $2,000 per ounce on Friday, a new record high. Investors have continued to pile into safe haven assets like gold amid the economic uncertainty caused by the coronavirus pandemic.
What to watch for
Emergency federal unemployment benefits, which were being paid out at $600-per-week, are set to expire Friday. Congress and the White House remain deadlocked over an agreement, which means that there could be significant delays before a new program is up and running.