Source: Sharecast
After a brief stint in positive territory, markets quickly gave up gains, with the Dow falling 0.32% and the S&P 500 slipping 0.01%, though the Nasdaq managed to eke out a 0.05% gain to a new record closing high of 20,895.66.
Despite the subdued session, stocks still finished the week with gains as market participants seemingly shrugged off speculation that Donald Trump was gearing up to fire the head of the Federal Reserve, and focused instead on stronger-than-expected US economic data.
Kathleen Brooks, research director at XTB, noted that while tariffs dominated (and weighed on) market sentiment earlier this week, risks have receded in recent days as headlines have switched to Trump's health concerns.
"The EU and Canada now face the biggest hurdle to agree better terms than the 30% and 35% tariff rates applied to their exports. The August 1st deadline is a risk event for markets, however, with the President toning down his rhetoric, markets are quick to forget tariff risks and concentrate on the positives including a resilient US economy," Brooks said.
Economic data
On the macro front, housing starts rose 4.6% month-on-month in June to a seasonally adjusted rate of 1.32m, according to the Census Bureau, cutting into May's revised 9.7% drop and broadly in line with expectations, while building permits increased 0.2% month-on-month to a seasonally adjusted annualised rate of 1.39m.
The University of Michigan's headline consumer confidence index edged up from a reading of 60.7 for June to 61.8 for July - a five-month high but still 16% bellow the end 2024 level.
"Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future," according to the survey's director, Joanne Hsu.
Market movers
Streaming giant Netflix was trading 5% lower despite posting an earnings and revenue beat and raising FY revenue guidance. Investors were focusing on comments that operating margins will be lower in the second half.
3M and American Express traded higher on the back of Q2 earnings that came in ahead of expectations.
Talent Energy jumped nearly 25% after striking a $3.5bn deal to purchase two combined-cycle gas-fired power plants.
