Stocks were mixed on Friday as concerns over a resurgence of Covid-19 weighed on global markets, though tech shares pushed higher.
The Dow Jones Industrial Average fell 245 points, or 0.5%. The S&P 500 rose slightly and the Nasdaq Composite added 0.5%.
Markets took a hit after Austria announced earlier in the day that it would re-enter a full national lockdown due to a spike in Covid cases. Germany also unveiled Thursday more restrictions for unvaccinated people, as a fourth wave sent daily cases to a record high.
Shares of air carriers were lower as investors worried about the Austrian lockdown’s potential effects. United Airlines fell nearly 4% while Delta and American fell more than 1%. Boeing lost 4%.
Other travel stocks dropped too, with Expedia and Booking Holdings down 2% and Airbnb losing nearly 5%. Cruise lines were about 3% lower.
The decline in airline and travel stocks comes about a week after the Biden administration lifted pandemic travel restrictions that have barred many international visitors for nearly 20 months. That move was cheered by airlines and other travel companies. But the increase in Covid cases and new restrictions in Europe is damping hopes for an immediate rebound in trans-Atlantic travel, a usually lucrative segment that is key to large carriers’ return to profitability.
Big energy companies led the declines in the S&P 500 as demand concerns related to new lockdown orders hurt oil prices, which were already in a slump. Hess and Diamondback Energy slid about 6% Friday. Marathon Oil and Devon Energy fell 5%.
Meanwhile, stay-at-home stocks moved higher. Zoom and Meta Platforms gained about 2%, while Peloton added more than 1%.
Friday’s moves took place as the market rally appeared to have stalled this week near record levels.
So far this week, the blue chip Dow is down 0.6%, on pace for its second negative week in a row. The S&P 500 headed for a modest gains, up 0.4% this week. And the tech-heavy Nasdaq Composite is on track to end the week 1.3% higher. The S&P 500 is striving for its sixth positive week in seven, sitting 0.3% below its all-time high.
Those weekly moves come despite major retailers reporting strong quarterly earnings. Macy’s and Kohl’s both blew past analyst estimates in their quarterly reports released Thursday.
Intuit also posted stronger-than-expected results on Friday, sending its shares soaring by more than 11%. The TurboTax developer also raised its full-year revenue guidance. Nvidia continued its strong run, with shares rising 2.5% on continued momentum from its earnings beat earlier this week.
Tech shares more broadly continued their rally. Twitter, Meta Platforms and Adobe were among the other top gainers in the S&P.
More than 90% of the S&P 500 companies have handed in their financial results for the third quarter, and over 80% of them reported earnings better than Street’s expectations, according to Refinitiv. S&P 500 companies are on track to grow profit by 41.5% year over year.
“Better than expected earnings has been the name of the game this week for the market,” Mike Loewengart, managing director of investment strategy at E-Trade Financial. “While investors may have entered earnings season with some trepidation, there are some clear signs that consumers are resilient and corporate balance sheets are strong despite pricing pressures.”
The House of Representatives voted Friday to pass President Biden’s $1.7 trillion social safety net bill, sending it to the Senate, where it is likely to be revised in the coming weeks.
Investors are also keeping an eye on President Joe Biden’s pick for the next Federal Reserve chair, which he is expected to unveil by the weekend. Many expect an even more dovish Fed if Lael Brainard is named the central bank chief, meaning it would take longer to raise interest rates or tighten policy than under Jerome Powell.
— CNBC’s Leslie Josephs contributed to this report.
