Dow Gains While Nasdaq and S&P 500 Slip Late Morning

U.S. stocks were mixed in late-morning trading Friday, with the Dow Jones Industrial Average up 70.28 points, or 0.16%, at 44,981.5. The S&P 500 fell 13.38 points, or 0.21%, to 6,455.16, while the Nasdaq Composite dropped 72.73 points, or 0.34%, as strength in industrial names was offset by weakness across large-cap technology shares.

Corporate earnings have so far exceeded expectations by 8.4% in aggregate, with profits rising 11.4% year-over-year, according to Horizon Investments. That strength has helped keep valuations elevated, with the S&P 500 trading above 22 times forward earnings, a level last seen in the post-Covid rally, despite 10-year Treasury yields holding near 4.25%.

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Market sentiment remains underpinned by stronger-than-expected second-quarter earnings. Over 90% of S&P 500 companies have reported results, with earnings coming in 8.4% above expectations and growing 11.4% year-over-year, according to Horizon Investments. “These are the types of results many investors needed to feel confident about the S&P 500’s current price-to-earnings ratio,” Horizon noted, pointing to valuations above 22 times forward earnings despite 10-year Treasury yields holding near 4.25%. Horizon cautioned, however, that market leadership remains concentrated, with a small number of companies driving most of the index’s returns, and flagged Nvidia and Broadcom’s late-August and early-September results as key tests for sentiment.

Still, macroeconomic warning signs are emerging. Data compiled by the Netherlands Bureau for Economic Policy Analysis, Bloomberg, and Apollo Chief Economist Torsten Slok shows FedEx’s share performance — a leading indicator for global trade volumes — is pointing to a sharp slowdown. That signal has amplified concerns about manufacturing demand and export activity heading into the fall.

In corporate news, Intel was in focus after a Bloomberg report that the Trump administration is in talks to take a U.S. government stake in the company to help fund its Ohio expansion. Angelo Zino, vice president and senior equity analyst at CFRA Research, wrote that “greater government participation, aimed at significantly boosting U.S. chip manufacturing, could seek to push and/or encourage U.S. fabless chipmakers to leverage INTC’s U.S. facilities.” While calling the development “clearly positive,” Zino added that it “doesn’t change the chipmaker’s product business prospects” and that the firm is still waiting to see whether Intel can secure a “white knight” partner for its foundry initiatives.

Earnings news also shaped sector moves. Wedbush analysts led by Daniel Ives highlighted NICE Ltd.’s second-quarter results, which beat expectations on both revenue and earnings per share, driven by accelerating demand for its CXone AI-powered cloud platform. Wedbush maintained an “Outperform” rating but trimmed its price target to $170 from $200, citing a lower valuation multiple despite continued $1 million-plus deal momentum and the pending $955 million acquisition of Cognigy to deepen AI capabilities.

Wedbush also reiterated its “Outperform” rating on The Metals Company (TMC), noting regulatory progress and increased White House backing for domestic critical mineral supply chains. The firm cited NOAA’s confirmation of full compliance on TMC’s exploration license applications and priority rights, as well as a recent $85 million strategic investment from Korea Zinc. With the Trump administration proposing roughly $1 billion in funding to accelerate U.S. critical mineral development, Wedbush said TMC is “well-positioned to emerge as a critical enabler of U.S. supply chain independence.”

In commodities, September crude oil futures fell 1.30% to $63.13, extending a weeklong slide on growth concerns. December gold futures edged up 0.16% to $3,388.50, as some investors sought hedges against inflation and market volatility.

With valuations stretched and key earnings catalysts ahead, traders are balancing upbeat corporate fundamentals with a more uncertain macro backdrop. As Horizon Investments put it, the next several weeks “will likely play a significant role in shaping the market’s direction” heading into the seasonally volatile month of September.