Phew. The weekend is finally here.
The Dow Jones Industrial Average traded slightly to the downside Friday, ending the blue chip index's five-day winning streak.
At the close, the Dow fell 6 points, or 0.02%, to 23,996, the S&P 500 fell 0.01%, and the Nasdaq was down 0.21%. Stocks on Thursday finished higher for the fifth straight session, and the gains moved the Dow and S&P 500 out of correction territory.
Now we just have to survive the first week earnings season.
Activision Blizzard's Divorcing Bungie
The company is Real Money's stock of the day.
In the break-up, Bungie will get full-control of the Destiny franchise. Destiny was once the most successful franchise of all time.
"Realigning resources around more profitable titles as well as freeing up resources to focus on project development may be a smart move over the longer term," wrote BMO Capital Markets analyst Gerrick Johnson, who has a "market perform" rating on the stock with a $51.35 price target. "A focus on profitability in a year with limited new IP also seems prudent."
At the close, Activision was down 9.4% to $46.54 a share.
There's No Recession in Sight, According to This Financial Adviser
Nicole Webb, a financial adviser at Wealth Enhancement Group, sat down with TheStreet to talk about earnings and how investors can prepare their portfolios.
She said that companies are lowering the Street's expectations when announcing guidance so that they can impress with earnings, which kick off in earnest next week.
Most recently, Wall Street saw Macy's (M) fall after it lowered its fiscal-year guidance. The company said it now expects comparable-store sales to increase 2% in the year, down from its previous estimate of between 2.3% and 2.5%. Net sales are now expected to be flat year over year, down from the previous estimate of a 0.3% to 0.7% increase, Macy's said.
Webb said that the companies explain the lowered guidance, "Well we did it and we beat it just a little bit. So we still think that the economic data, that there's strength in the U.S. economy. We're not buying into an imminent recession at this point. But we do see probably more slowed and stable growth. We can't get that resurgence that we got out of jobs and tax reform. So closing on 2017 that really lifted numbers for 2018 but that math is not repeatable again in 2019. So we're going to need something more."
Jim Cramer's View on the China Trade War
In his column over on Real Money, Jim Cramer discussed the trade war and what he's seeing in the markets right now.
"American Express has been trying to get a business operating license in China and has even teamed up with LianLian, which is the fourth largest non-bank payment provider, to get the business going. It's bad enough that the government has insisted that Amex has a partner, without that license nothing is going to happen. It's the easiest way to show the financial sector that it is welcome in China," he continued.
And finally, Cramer wrote, "Apple? We know that Apple is a conspicuous U.S. product that is easily avoided, especially if competitor Huawei has much larger subsidies at the register. If we were to see any embrace at all by the government of Tim Cook then we know there's real movement."
Apple is a holding in Jim Cramer's Action Alerts Plus portfolio.
Alright, that's a wrap for now. Catch y'all next week.