It was shaping up to be one of those days where everything feels a bit off. U.S. stocks slid midway through Friday's session, with the Nasdaq Composite taking the brunt of the pain by dropping more than 350 points. Even solid earnings news from a tech heavyweight couldn't reverse the tide.
The Dow Jones Industrial Average declined 0.45% to 48,487.12, while the Nasdaq fell 1.60% to 23,216.22. The S&P 500 dropped 1.04% to 6,829.12, as investors seemed more interested in taking chips off the table than celebrating wins.
Sector Scorecard: Winners and Losers
Consumer staples managed to edge up 0.3% on Friday, proving once again that when markets get nervous, investors reach for the boring stuff that people buy regardless of economic conditions.
Information technology stocks, on the other hand, got hammered. The sector tumbled 2.5%, weighing heavily on the broader indexes and reminding everyone that tech giveth and tech taketh away.
Broadcom Delivers the Goods
Broadcom Inc. (AVGO) reported fourth-quarter results after Thursday's close that should have made investors happy. The semiconductor and infrastructure software giant posted revenue of $18.02 billion, surpassing analyst expectations of $17.49 billion. Adjusted earnings came in at $1.95 per share, comfortably beating the $1.86 consensus estimate.
The company's board sweetened the deal by approving a 10% quarterly cash dividend increase to 65 cents per share, payable on December 31 to shareholders of record as of December 22. Not a bad way to reward the faithful.
Big Movers on the Upside
cbdMD Inc (YCBD) absolutely exploded, rocketing 126% to $1.42 after announcing it had regained full compliance with NYSE American listing standards. Getting back in good standing with your exchange tends to do that.
Canopy Growth Corp (CGC) surged 38% to $1.56, riding a wave of optimism after reports emerged that President Donald Trump intends to relax federal marijuana regulations. Cannabis stocks have been beaten down for years, so any hint of regulatory relief sends them flying.
Zedge Inc (ZDGE) climbed 43% to $3.48 following better-than-expected quarterly financial results, proving that execution still matters.
The Day's Biggest Losers
Applied Therapeutics Inc (APLT) cratered 44% to $0.12 after Cycle Pharmaceuticals announced plans to acquire the company. Acquisition news doesn't always mean celebration, especially when the price disappoints.
Fermi Inc (FRMI) dropped 34% to $10.04 after First Tenant notified the company that it is terminating the AICA. Deal breakups are never pretty.
Tenaya Therapeutics Inc (TNYA) fell 35% to $0.89 after announcing the pricing of a $60 million public offering of 50 million units at $1.20 per unit. Dilution fears sent existing shareholders running for the exits.
Commodities and Global Markets
Oil edged up 0.1% to $57.65 while gold slipped 0.1% to $4,310.70. Silver got crushed, falling 4.8% to $61.475, and copper declined 3% to $5.3380 as industrial metals faced pressure.
European markets closed lower across the board. The eurozone's STOXX 600 declined 0.53%, while London's FTSE 100 fell 0.56%. Germany's DAX 40 dropped 0.45%, France's CAC 40 slipped 0.21%, and Spain's IBEX 35 Index declined 0.17%.
Asian markets provided a brighter picture, closing higher on Friday. Japan's Nikkei gained 1.37%, Hong Kong's Hang Seng surged 1.75%, China's Shanghai Composite rose 0.41%, and India's BSE Sensex added 0.53%.
Economic Calendar
The Baker Hughes oil rig count report was scheduled for release Friday, giving energy traders another data point to digest as they assess the health of the drilling sector.
