Bulls Go To Ground As Oil Giants Cripple Dow; Apple, Alphabet Dive | Stock News & Stock Market Analysis

Stocks clocked what was easily their worst session of the year on Friday, as a dream-team roster of earnings reports failed to muster a rally, and as January payroll data fanned fears of inflation.

X The Dow Jones industrial average dropped 2.5% as all 30 Blue Chips were down in the index’s deepest one-day decline since September 2016. That left the Dow down 4.1% for the week, its worst week since January 2016.

Big oil names took the Dow’s hardest hits with Exxon-Mobil (XOM) unraveling 5.1% and Chevron (CVX) diving 5.6% after delivering their quarterly results. Exxon missed analysts’ targets by wide margins. Chevron reported mixed results.

The Nasdaq dug a 2% decline, despite powerful gains by Amazon.com (AMZN), AthenaHealth (ATHN) and Mattel (MAT). Apple (AAPL) tumbled 4.3% and Google parent Alphabet (GOOGL) careened 5.3% lower after it revealed its Google Cloud Platform topped $1 billion in revenue during the quarter. That’s impressive, but only a fraction of the $5.1 billion reported by Amazon’s cloud unit.

The Nasdaq had mustered a mild recovery near midday, then hit the skids again after 1 p.m., around the time of the release of the previously classified GOP memo regarding FBI investigations.

The S&P 500 stripped away 2.1% of its value. The Russell 2000 small-cap gauge took a 2.1% dive.

Inflation Fears Send Bonds, Commodities Sprawling

The Labor Department’s January payrolls report showed above-forecast hiring during the month, but a surprise 2.9% year-over-year jump in hourly wages compounded fears fanned on Wednesday, when the Federal Reserve’s policy announcement took a more hawkish stance on inflation.

That was enough to reignite a sell-off in U.S. bond markets, driving the 10-year Treasury yield briefly to a four-year high of 2.85%. The dollar rebounded hard vs. the euro and the yen, sending commodities sharply lower. Brent crude, gold and copper all fell more than 1%. Silver sold off nearly 4%.

The result sent ore miners and integrated oil producers to the worst losses of the day among industries. Freeport McMoRan (FCX) deflated 7.6%. Alcoa (AA) scrapped 6.4% of its market value.

Truckers Divided; Mattel Retakes Ground; Sony, Deckers, Tableau Spike

In earnings news, trucking firms posted both the largest gain and the worst loss of the session. USA Truck (USAK) spiked 24% after reporting a second straight quarter of rebounding sales and earnings growth. The thinly traded stock surged to its highest mark since June 2015, putting it 30% above a 19.15 buy point from a January breakout.

Truck fleet heavyweight YRC Worldwide (YRCW) collapsed 22% after its fourth-quarter results fell far short of views.

AthenaHealth powered up 14%. The digital medical records specialist scored a big Q4 earnings beat. Shares are 27% off an October low, climbing the right side of a possible seven-month base.

Mattel’s 8% gain in heavy volume was impressive, but was only able to retake a portion of the stock’s losses posted over the previous seven sessions. The stock remains in a long-term downtrend.

Tableau Software (DATA), Deckers Outdoor (DECK) and Sony (SNE) were clear winners following their earnings reports.

Tableau gapped up to a 9% gain in massive trade, breaking out past an 82.42 buy point in a cup base after the company beat profit estimates. Shares remained in buy range.

Sony muscled up nearly 6%, also in a big-volume gap-up. The gain moved shares beyond a buy range above a 48.43 buy point that the stock had cleared in fast trade on Thursday.

Uggs maker Deckers Outdoor trimmed its gains furiously in afternoon trade, but still managed a 7.3% advance. The stock is in a profit-taking zone from its latest entry.

Among IBD 50 stocks, Casa Systems (CASA) was Friday’s clear leader. The telecom services and gear maker climbed 3%, scaling further up the right side of its IPO base, toward a 21.39 buy point.

Other Important Market News For Friday:

Big Wage Gains Sinks Stocks, Bonds: 3 Reasons To Doubt The Data

Google Reveals Cloud Revenue For First Time; Amazon Still Tops

It’s Time To Review Your Stock-Selling Smarts

7 Reasons The Stock Market Isn’t What You Think It Is

 

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