US Stocks finished mixed on Friday, as investors continue to digest latest earnings reports amid expiration of many options. The Dow Jones closed marginally higher, marking 10th straight session of gains and its longest winning streak since 2017. Following yesterday's tech losses, the S&P 500 ended slightly up while the Nasdaq lost 0.2% ahead of the Nasdaq 100 rebalance on Monday before the market opens. Among stocks, American Express sank 3.9% after the company left its forecast for full-year profit unchanged and revenue missed expectations, while earnings surprised on the upside. CSX fell 3.7% on the back of disappointing results. So far this week’s corporate results have eased concerns about the resilience of the US consumer and the health of the financial system after the banking crisis in March. On the week, the Dow and the S&P 500 gained 2.% and 0.6% respectively, while the Nasdaq dipped 0.5%.
The Nikkei 225 Index fell 0.57% to close at 32,304 on Friday, extending losses from the previous session as investors digested data showing Japan’s annual headline and core inflation rates accelerated slightly in June and remained above the central bank's 2% target. Investors now look ahead to the Bank of Japan’s policy decision next week, where it is expected to maintain ultra-low interest rates. Technology stocks led the decline following similar moves on Wall Street overnight, with sharp losses from Advantest (-5.8%), Tokyo Electron (-5.6%), SoftBank Group (-0.7%), Socionext (-3.7%) and Renesas Electronics (-2.5%). Other index heavyweights also slumped, including Kawasaki Kisen (-1.3%), Sumitomo Mitsui (-1.2%), Fast Retailing (-0.9%), Shin-Etsu Chemical (-2.1%) and Screen Holdings (-4.9%).
The Shanghai Composite shed 0.06% to close at 3,168 while the Shenzhen Component lost 0.06% to 10,810 on Friday, reversing gains from earlier in the session as investors eyed more stimulus measures from Beijing to support growth. On Thursday, the People’s Bank of China kept its one and five-year loan prime rates unchanged at its July fixing, defying expectations of further policy easing amid a slowing economy. Meanwhile, Chinese authorities pledged to boost consumption and provided support measures to select industries this week including the automobile and electronics sectors. High-flying technology stocks led the decline, with sharp losses from Huagong Tech (-3.4%), Eoptolink Technology (-3.8%), Inspur Electronic (-1.9%), Dawning Information (-2.5%) and China Wafer Level (-2.5%). The Shanghai and Shenzhen indexes lost 2.16% and 2.44% this week, respectively.
The BSE Sensex closed 890 points lower at 66,685 on Friday, retreating sharply after extending its record high for five consecutive sessions since the start of the week as investors took advantage of Mumbai’s bullish momentum and booked profits. Losses in the session were led by tech-centered companies, pressured by selling worldwide after concerning reports from Tesla and Netflix on Wall Street. Domestically, Infosys shares plunged by 8.2% after slashing its revenue projections due to weak consumer spending for US and European clients. Tech Mahindra, HCL Technologies, TCS, and Wipro slid between 4.3% and 2%. Outside tech, Hindustan Unilever trailed 2% due to poor earnings. In the meantime, Reliance Industries also booked losses, trimming gains from the week ahead of its earnings report after the bell.
