Stocks were mixed in late trading Friday as the market took a breather from a rally that has lifted major indexes to record highs.
The Dow Jones Industrial Average (DJI) was up 0.2% recently, after surging to its first record high since December in the opening minutes of the session. The move higher was powered by a 12% gain for shares of UnitedHealth (UNH), following news late Thursday that Warren Buffett’s Berkshire Hathaway had taken a stake in the struggling insurer. The benchmark S&P 500 (SPX) was down 0.2% after closing at records in each of the past three sessions, while the tech-heavy Nasdaq Composite (IXIC), which has also hit a series of new highs recently, declined 0.4%.
Stocks finished yesterday’s session near unchanged after spending most of the day in negative territory following a report on wholesale inflation that came in hotter than expected, which tempered expectations for interest rate cuts by the Federal Reserve. The major indexes remain on track to post weekly gains for the second straight week.
Investors were keeping close tabs on several economic data releases this morning. A report on retail sales came in largely as expected, while a closely watched reading on consumer sentiment was slightly weaker than anticipated. Market participants are watching the data for confirmation of trends that would make make the Fed more likely to cut its benchmark interest rate for the first time this year.
Intel (INTC) shares jumped nearly 4% Friday following reports late yesterday that the Trump administration is weighing the possibility of taking a stake in the beleaguered chipmaker.
Other semiconductor stocks were under pressure today. Applied Materials (AMAT) plunged 14% after issuing a disappointing outlook, while KLA Corp. (KLAC) dropped 8% and Lam Research (LRCX) slid 7%. The PHLX Semiconductor Index (SOX) was down more than 2% as concerns about tariffs on imported chips also weighed on the sector.
Nvidia (NVDA) and Broadcom (AVGO), the chipmakers with the largest market capitalizations, were down 1% and 2%, respectively.
Other mega-cap technology stocks were mixed. Tesla (TSLA) declined 2%, while Apple (AAPL) and Amazon (AMZN) also lost ground. Alphabet (GOOG) rose about 1%, while Meta Platforms (META) and Microsoft (MSFT) ticked higher.
Health insurance stocks were broadly higher on Friday, following UnitedHealth’s sharp move. Centene Corp. (CNC), Molina Healthcare (MOH) and Elevance Health (ELV) each climbed about 5%.
Bitcoin was trading $117,200 recently, down from an overnight high of $119,300. The digital currency hit a record high of $124,500 early yesterday before falling sharply as the day progressed.
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was down 0.4% at 97.85, trading at its lowest level in three weeks.
The yield on the 10-year Treasury, which affects borrowing costs on all sorts of loans, notably mortgages, rose to 4.33% from 4.29% at yesterday’s close, adding to the sharp increase that followed the wholesale inflation report. The yield fell as low as 4.18% last week, its lowest level since early May, as market expectations for interest rate cuts by the Fed increased after a weak July jobs report.
West Texas Intermediate futures, the U.S. crude oil benchmark, slipped 1.6% to $62.90 per barrel and were trading at their lowest levels since early June. Gold futures were holding steady at about $3,380 an ounce.
There’s Some Meme-Stock Action Today
13 minutes ago
Why not end the week with some meme-stock action?
That seems to be what’s going on, at least in part, with shares of Opendoor (OPEN), which were recently up some 10%. The company earlier today said its CEO and chair would step down, to be replaced on an interim basis by its chief technology and product officer, while it finishes a search for a replacement a press release said was “well underway.”
The news helped lift shares of the online home-buying company to levels that, at intraday highs, were the highest since July 22, though below their recent high just under $5 apiece. Enthusiasm for the stock driven by meme-stock traders—encouraged by a highly bullish money manager—has helped drive action in the stock, as has a general willingness among traders to dip into riskier corners of the market.
Some other meme stocks were comparably quiet today. Traditional meme names GameStop (GME) and AMC Entertainment (AMC) weren’t doing much in recent trading; a few others, among them GoPro (GPRO) and Kohl’s (KSS), were moving a bit more, though the latter was falling. Some retail-investor money has been shifting toward crypto stocks and related investments, VandaTrack research said earlier this week.
If you’re looking for a reason retail investors keep leaning in with stocks at highs—it might be simply because what they’re doing seems to be working for now. A recent Investopedia survey showed investor sentiment remains high.
The third quarter “to date is a classic ‘global everything rally,'” DataTrek Research wrote earlier today. “It is anchored by the American Tech sector but spreading through every major stock market index around the world.”
One measure of that effect: Retail-investor portfolios recently overtook an ETF that tracks the tech-focused Nasdaq-100 year-to-date for just the second time since 2014, according to VandaTrack; last year was the only time they’ve done so for a full calendar year.
Intel Bucks Chip Stock Sell-Off Amid Tariff Concerns
2 hr 1 min ago
A potential deal with the Trump administration is shaping up to be a saving grace for Intel (INTC), which saw its shares climb Friday while other semiconductor stocks slid.
President Trump told a group of reporters aboard Air Force One Friday morning that he could put tariffs on imported chips as soon as next week.
“I’ll be setting tariffs next week and the week after, on steel and on, I would say chips—chips and semiconductors, we’ll be setting sometime next week, week after,” the president said in-flight, on the way to meet with Russian President Vladimir Putin in Alaska. “I’m going to have a rate that is going to be 200%, 300%,” Trump said. The White House didn’t immediately respond to a request for comment.
The PHLX Semiconductor Index (SOX) was recently down more than 2%. Intel was among a handful of the index’s constituents that was unscathed; shares were up more than 6%.
Reports that the Trump administration is considering taking a stake in Intel are giving the stock a boost. Discussions have included tapping the Chips Act—of which Trump has been a critic—to partially fund a stake in Intel, according to Bloomberg, citing people familiar with the matter. Deal talks follow on the heels of Intel CEO Lip-Bu Tan’s meeting with President Trump on Monday, after Trump publicly called for Tan’s resignation, citing purported China conflicts.
Alex Wroblewski / Bloomberg / Getty Images
A White House spokesperson told Investopedia any discussions “should be regarded as speculation unless officially announced by the Administration.” Intel did not immediately respond to queries about the talks.
Some analysts see the Trump administration as a potential “hero customer,” which Intel could use to fund development for its 14A process, a next-gen chip manufacturing technology that could boost chip speeds.
“Intel could of course use money to help capitalize the fabs given the heavy losses and cash burn, and help to support them during the (likely) years it will take to build up substantial customer base,” Bernstein analysts led by Stacy Rasgon wrote in a report Friday. Intel is already leaning on private equity deals to support building out semiconductor fabrication plants in and outside the U.S.
However, what Trump might want in return is an outstanding question, with investors waiting to see if Trump can “Make Intel Great Again,” the analysts said. The administration recently secured revenue-sharing deals with Nvidia (NVDA) and Advanced Micro Devices (AMD) in exchange for export licenses to resume sales of key AI chips to China.
Other market observers including Jim Cramer, and Morningstar’s Brian Colello also said Intel could likely use the help. “A stake could go a long way toward finishing what Gelsinger couldn’t afford to build but did it anyway,” Cramer tweeted Friday, referencing former Intel CEO Patrick Gelsinger, who stepped down in December.
UnitedHealth Levels to Watch as Stock Surges
3 hr 26 min ago
UnitedHealth Group (UNH) shares surged Friday after Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) revealed a stake in the embattled healthcare giant.
The stock was up over 11% in recent trading at around $303. Still, shares of UnitedHealth have shed over a third of their value since the start of the year, weighed down by worries about investigations into the company’s Medicare billing practices, former CEO Andrew Witty’s sudden departure in May, and a downbeat forecast amid higher care costs.
After bottoming at the start of August, UnitedHealth shares have continued to gain momentum, recently breaking out above a steep downtrend line that extends back to the April peak.
Moreover, the rally in the stock has coincided with the relative strength index moving back above its neutral threshold, indicating accelerating buying interest.
Investors may monitor major overhead areas on UnitedHealth’s chart around $325, $380 and $440, while also watching a key zone of support between $250 and $235.
Read the full technical analysis piece here.
Where Berkshire’s Stock Investments Stood at End of Q2
4 hr 40 min ago
Warren Buffett’s Berkshire Hathaway revealed a position in embattled healthcare giant UnitedHealth Group and reported smaller stakes in longtime holdings Apple and Bank of America, according to a regulatory filing Thursday.
Berkshire (BRK.A, BRK.B) at the end of the second quarter held 5 million shares of UnitedHealth Group (UNH) valued at about $1.6 billion. The company has likely been accumulating shares since the fourth quarter of last year, when it first asked regulators to let it build a position in secret to avoid a price spike. Shares of UnitedHealth Group jumped more than 11% this morning.
Berkshire also opened smaller new positions in security products provider Allegion (ALLE), homebuilder D.R. Horton (DHI), Lamar Advertising (LAMR), and steelmaker Nucor (NUE).
T-Mobile (TMUS) was Berkshire’s sole exit. The conglomerate sold the entirety of its $1 billion stake in the telecommunications giant. It also offloaded nearly half of its Charter Communications (CHTR) holdings.
Berkshire made smaller cuts to two of its largest holdings, selling 20 million of its 300 million Apple (AAPL) shares and 26 million of its 630 million Bank of America (BAC) shares. Buffett began paring Berkshire’s stakes in both last year.
Buffett scooped up 3 million shares of Chevron (CVX), another of his biggest holdings, and left stakes in longtime investments Coca-Cola (KO) and American Express (AXP) untouched.
Berkshire slashed its exposure to banks in the first quarter, exiting its position in Citigroup (C) and trimming its holdings of Bank of America and Capital One (COF). On the flip side, the firm added to some of its food and beverage holdings, including alcohol maker Constellation Brands (STZ) and Domino’s Pizza (DPZ).
In the second quarter, the firm seemed to favor homebuilders. On top of entering D.R. Horton, Berkshire bought about 7 million shares of competitor Lennar (LEN), upping its stake from just 150,000 shares.
Berkshire shares have shed about 11% of their value since Buffett announced in early May that he would step down as CEO at the end of 2025.
Applied Materials Stock Plunges on Weak Outlook
6 hr 10 min ago
Shares of Applied Materials (AMAT) sank in premarket trading Friday, a day after the semiconductor equipment manufacturer gave weaker-than-expected guidance as global economic and tariff worries impact its business, especially in China.
The company sees current-quarter adjusted earnings per share (EPS) between $1.91 and $2.31, and revenue between $6.20 billion and $7.20 billion. Analysts surveyed by Visible Alpha were looking for $2.37 and $7.30 billion, respectively.
CEO Gary Dickerson said Applied Materials was “currently operating in a dynamic macroeconomic and policy environment, which is creating increased uncertainty and lower visibility in the near term, including for our China business.”
CFO Brice Hill added that the company anticipates lower revenue “driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing.”
The warning came as the company reported strong third-quarter results. Adjusted EPS came in at $2.48, with revenue rising 8% year-over-year to $7.30 billion. Both were ahead of Visible Alpha consensus estimates.
Applied Materials shares were down 13% in recent trading. Entering Friday’s session, Applied Materials shares were more than 15% higher year-to-date.
Dow, S&P 500 Futures Point to Higher Open
6 hr 59 min ago
Futures tied to the Dow Jones Industrial Average rose 0.6%.
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S&P 500 futures added 0.2%.
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Nasdaq 100 futures were down fractionally.
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