The Nasdaq Composite reached a fresh all-time high on Friday as megacap tech stocks rose late in the week. The tech-heavy index rose 0.6% to settle at 18,518.61, while the Dow Jones Industrial Average fell over 260 points and the S&P 500 Index ticked below the flatline.
Here's how the market settled to close out the week:
S&P 500 Index (NYSE: SPY): -0.03% or -1.73 points to 5,808.13
Dow Jones Industrial Average (NYSE: DIA): -0.62% or -261.25 points to 42,113.11
Nasdaq Composite Index (NASDAQ: QQQ): +0.56% or +103.12 points to 18,518.61
In Economic News:
Consumer Sentiment rose to a six-month high in October, the University of Michigan's Consumer Sentiment Index reading showed on Friday, as outlooks improved surrounding price conditions. The final October sentiment reding rose to 70.5 from 70.1 month-to-month, and above October's preliminary reading of 68.9.
Beneath the headline, consumers expect prices to increase at an annual rate of 2.7% over the next year, unchanged from September, and inflation to rise 3% on average over the longer-term, down from last month's reading of 3.1%.
"The share of consumers spontaneously mentioning high interest rates as a negative factor for buying conditions for homes, durable goods and vehicles fell," said Joanne Hsu, director of the Surveys of Consumers, in a statement.
In the News:
Tapestry's (NYSE: TPR) planned acquisition of Capri (NYSE: CPRI) was blocked by Federal Judge Jennifer Rochon late Thursday, with the order granting the Federal Trade Commission a preliminary injunction to block the merger between America's largest luxury houses.
"Today's decision is a victory not only for the FTC, but also for consumers across the country seeking access to quality handbags at affordable prices," said Henry Liu, director of the FTC's Bureau of Competition, in a statement. "These bags are a product which millions of people rely on throughout their daily lives. The decision will ensure that Tapestry and Capri continue to engage in head-to-head competition to the benefit of the American public."
Spirit Airlines (NYSE: LUV) shares plunged lower on Friday after the budget airline announced it would cut jobs and sell 23 older Airbus aircraft in a securities filing. The sale will bring in an estimated $519 million, according to the filing, while the job cuts could reduce costs by roughly $80 million.
KeyBanc Capital Markets analyst Brandon Nispel downgraded Apple (NASDAQ: AAPL) to Underweight from Sector Weight, and lowered the firm's price target to reflect a more than 13% downside from Thursday's close, citing that the iPhone SE is "not purely additive" to overall iPhone sales based on the firm's consumer survey. The September survey showed that 59% of respondents are increased in upgrading to the iPhone 16, while 61% are interested in the iPhone SE.
"We think this shows the iPhone SE is not incremental, and could possibly be cannibalistic to iPhone 16 sales," Nispel wrote in a note to clients. "From our view, if iPhone SE is successful, iPhone Units could rise but [average sales prices] could fall, contrary to consensus."
Citi analyst Geoff Meacham downgraded Bristol-Myers Squibb (NYSE: BMY) to Neutral from Buy, but raised the firm's price target to imply a 4% upside from Thursday's close, citing that new product launches could hinder the drug maker in the near-term.
"While we are bullish on the new product portfolio and its growth impact towards the end of the decade, the transition period in 2025-2027 is likely to add volatility to share performance, in our view," Meacham wrote in a Friday note to clients. Meacham believes BMY is more of a 2027 growth story, with the products contributing 27% of total revenues compared to 11% projections for 2024.