Amazon.com Stock Drags Nasdaq As Indexes Close Mixed

A week of solid gains for the stock market ended with a mixed performance Friday, as a post-earnings slide in Amazon.com stock hurt the Nasdaq composite more than other indexes.

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The Nasdaq fell nearly 0.3%, shaving the week’s gains to 1.4%. The composite made it six straight up weeks as it recovers from its first decline of more than 20% since 2011.

Amazon.com (AMZN), the second largest member of the composite after Microsoft (MSFT), slid. The company late Thursday beat Q4 expectations but gave a weak outlook. Several analysts followed with bearish comments, citing slowing in various parts of the company. Amazon.com shares fell and continue to meet resistance at the 200-day moving average.

The S&P 500 reversed lower to end 0.1% higher and climbed 1.5% for the week. The S&P and the Nasdaq have closed near weekly highs each of the six weeks since they bottomed in late December — a bullish sign.

The Dow Jones Industrial Average fared better, up 0.3%. Earnings were the story in the Dow also, where Chevron (CVX) and Exxon Mobil (XOM) surged on earnings reports. Both oil giants’ stocks are recovering from big declines.

Volume was lower from Thursday’s totals, according to unconfirmed numbers. Advancing stocks topped decliners by a 5-4 ratio on the Nasdaq and by 10-to-9 on the NYSE.

Energy, transportation and technology were among the top sectors Friday. Consumer discretionary, real estate and retail were the weakest.

Employment Again Strong

Friday’s selling washed away early gains in the Dow and S&P 500 following another strong employment report. U.S. employers added 304,000 jobs in January. The unemployment rate edged up to 4% due to the government shutdown. The report blew away economists’ forecasts of 158,000 new jobs.

Leading stocks came out reasonably well. The Innovator IBD 50 ETF (FFTY) climbed 0.5%, and was up about 2.5% for the week.

Among notables in the IBD 50, Medpace (MEDP) made a new high and is the IBD Stock of the Day. The stock extended gains after breaking out of a cup with handle base this week.

In other leading stocks, footwear company Deckers Outdoor (DECK), generic drug company Dr. Reddys Labs (RDY) and investment firm LPL Financial (LPLA) broke out of bases.

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