S&P Top Gainers and Decliners Friday

Gainers

• Enphase Energy (ENPH) shares shined on Friday after the firm introduced new U.S.-made residential and commercial solar equipment that will help enable customers to qualify for federal tax credits. Solar projects that meet certain requirements are eligible for the Domestic Content Bonus Credit under the Inflation Reduction Act. An increase of 6.9% made Enphase Friday's top-performing S&P 500 stock.
  
• Although other banks suffered declines in the wake of their earnings reports, shares of Bank of New York Mellon (BK) soared 5.2%, notching an all-time high. The investment banking firm posted better-than-expected revenues and profits for the second quarter, boosted by higher fee revenues. Although net interest income fell year over year, reflecting a change in the bank's balance sheet mix, the key metric came in ahead of forecasts.
• Ford (F) shares drove 4.2% higher after the carmaker reportedly launched a 0% financing offer on leases for two of its popular electric vehicles (EVs)—the Mach-E and F-150 Lightning. Ford's announcement follows a favorable financing deal offered by Tesla (TSLA) in May on its Model Y vehicle as the companies jostle for position in the EV market.

Decliners

• Shares of Wells Fargo (WFC) plunged 6%, posting the heaviest losses of any S&P 500 component, after the financial giant reported a decline in net interest income, which appeared to overshadow better-than-expected revenue and earnings per share (EPS) results. Net interest income has come under pressure across the banking sector amid higher deposit rates and competition for customer money following the regional bank crisis in 2023.
• Delta Air Lines (DAL) shares dropped 3.1%, extending declines posted in the prior session after the carrier missed second-quarter profit estimates, dragged down increased capacity limiting fare prices as well as higher costs. Delta's forward outlook also raised doubts about the summer travel season.

-Michael Bromberg

Major Indexes Show Slight Gains for the Week

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all posted modest gains for the week, thanks to a recovery Friday from steep losses the previous session spurred by a selloff in large-cap technology stocks.

BNY Stock Bucks Banking Sector Downturn

Shares of Bank of New York Mellon, now known simply as BNY (BK), hit an all-time high Friday after the bank posted better-than-expected results and raised its dividend.

BNY shares, which were among the top gainers on the S&P 500 Friday, were up more than 5% in late trading. The stock has gained about 25% since the start of the year.

The company reported second quarter adjusted earnings per share (EPS) of $1.51, with revenue rising 2% to $4.6 billion. Both were above estimates.

Total fee revenue increased 3% to $3.4 billion, which BNY said was primarily driven by “higher market values, net new business, higher foreign exchange revenue and higher client activity.” Investment services fees climbed 5% to $2.4 billion on increased client activity in its fixed income and equity trading business

-Bill McColl

Novo Nordisk Gains as Ozempic Found to Cut Dementia Rates

Shares of of Novo Nordisk (NVO) rose in intraday trading Friday after the release of an Oxford study that showed the Danish company’s Ozempic diabetes drug was linked to lower rates of dementia and a range of mental problems.

The researchers said in The Lancet’s eClinicalMedicine journal that patients had a 48% lower risk of dementia after a year on Ozempic versus those who had taken an older drug, sitagliptin.

The study is the latest to show that semaglutide, the active ingredient in both Novo Nordisk’s Ozempic and its obesity medicine Wegovy, can treat more than diabetes or weight loss. The firm has been seeking to expand the uses of its blockbuster treatments, including whether it can reduce alcohol intake and treat alcoholic liver disease, Bloomberg noted.

Novo Nordisk ADRs were up nearly 2%, bringing their year-to-date gain to roughly 40%. Shares of Eli Lilly (LLY), which manufactures rival medications Mounjaro and Zepbound, also have taken off amid soaring sales of weight-loss drugs.

-Nisha Gopalan

Wells Fargo Leads S&P 500 Decliners

Wells Fargo (WFC) shares sank Friday after the lender reported a slump in second-quarter net interest income that offset higher-than-forecast results.

Net interest income (NII), a key measure of lending profitability, fell 9% year-over-year to $11.9 billion for the three months ended June 30.

Competition for borrowers as depositors seek higher interest rates has taken a toll on the banking sector's NII, which measures loans revenue minus what banks pay for deposits and funds. Banks like Wells Fargo, which are more focused on consumer banking, have been especially hurt by declines in NII.

The slump in net interest income overshadowed results that beat Wall Street analysts' estimates. Well Fargo reported earnings per share (EPS) of $1.33 on revenue of $20.7 billion, beating analysts' estimates compiled by Visible Alpha of $1.28 and $20.3 billion, respectively.

Walls Fargo shares were down nearly 7% around midday.

Shares of JPMorgan Chase (JPM) and Citigroup (C) also lost ground Friday, despite earnings reports that came in better than analysts expected.

-Nisha Gopalan

Watch These Russell 2000 Levels as Small Caps Rise

The Russell 2000 was up 1.7% in mid-morning trading after jumping 3.6% on Thursday as investors rotated from mega-cap tech stocks into smaller companies perceived to get a bigger boost from potential Federal Reserve rate cuts. 

The index broke out from a symmetrical triangle on Thursday, paving the way for the start of a new trend higher.

The measuring principle projects a shorter-term target of 2,295. A bars pattern predicts a longer-term target around 2,500.

During retracements, the index could retest the symmetrical triangle's top trendline near 2,080.

Read our technical analysis for a detailed review of the mportant levels to watch out for.

-Timothy Smith

Apple Remains in Uptrend Despite Thursday Pullback

Apple (AAPL) shares were on the rise this morning after shedding 2.3% on Thursday as investors pivoted out of top-performing large-cap tech stocks into small caps that may benefit more from expected rate cuts by the Federal Reserve this year.

Despite Thursday's drop, Apple shares remain in an uptrend, with the price continuing to gain momentum this month after breaking out from a pennant pattern.

The measuring principle, which calculates the distance of the trend in points that proceeded the pennant and adds that amount to the pattern’s top trendline, forecasts a price target of $271.

During pullbacks, Apple shares may encounter support on the chart at levels including $220, $197, and $190.

Read our technical analysis here.

-Timothy Smith