STORY: U.S. stocks closed lower on Friday as investors digested a mixed bag of economic data and earnings reports as well as the first week of President Donald Trump’s second term.
The Dow and S&P 500 both shed roughly three-tenths of a percent and the Nasdaq lost half a percent.
Existing home sales for December were stronger than expected, while business activity slowed to a nine-month low in January.
And the University of Michigan’s consumer sentiment reading for January dropped for the first time in six months.
Despite Friday’s stock losses, Wall Street’s indexes advanced for the second week in a row.
Liz Miller is president of Summit Place Financial Advisors.
“What we’re really going to take from all of this is that there is, you know, optimism with some caution with the new administration stepping in. And when we look across the market, we do know there’s that handful of top 10, top 15 S&P 500 stocks that are richly valued and have had tremendous runs. But that leaves us about 485 stocks that are at very reasonable valuations and have not fully participated. So this is still a very attractive market moving forward for investors.”
Among Friday’s stock moves, shares of AI chip leader Nvidia fell 3%, reversing a sharp rally earlier in the week.
Texas Instruments shares tumbled 7.5% after forecasting first-quarter profit below Wall Street estimates.
And Boeing shares lost ground after the plane maker warned of a fourth-quarter loss of about $4 billion.
Next week brings a slew of key inflation and economic growth data as well as the Federal Reserve’s two-day policy meeting, with the central bank expected to leave interest rates unchanged.
