U.S. stocks dipped slightly in afternoon trading Friday, a day after the S&P 500 index surged to a record high. Although technology and financial sectors led Friday's declines, Netflix, Inc. (NASDAQ:NFLX) shares gained around 5 percent to trade above $600 a share for the first time. The video streaming company's gains followed reports it is in talks with Wasu Media Holding (backed by Alibaba’s Jack Ma) to enter China's online video market, Bloomberg reported.
The Dow (INDEXDJX:.DJI) lost 5.31 points, or 0.03 percent, to 18,247. The Standard & Poor’s 500 index (INDEXSP:.INX) dipped 1.31 points, or 0.06 percent, to 2,120. And the Nasdaq composite (INDEXNASDAQ:.IXIC) fell 6.85 points, or 0.14 percent, to 5,044.
U.S. stocks declined in morning trading after U.S. consumer sentiment dropped to its lowest reading in six months.
Software giant Microsoft Corporation (NASDAQ:MSFT) was the largest decliner in the Dow Friday, losing more than 1 percent to $48.18. However, shares of Microsoft got a boost earlier this week when Deutsche Bank boosted its rating and raised its 12-month price target from $44 to $55.
A weak personal computer market is already priced into the stock, and there is new investor enthusiasm about Azure, Office 365 and other Microsoft products, Deutsche Bank analyst Karl Keirstead said in a research note Wednesday.
Network equipment maker Cisco Systems Inc. (NASDAQ:CSCO) was the largest gainer in the blue-chip index, adding 1.5 percent.
The telecommunications services sector was the largest gainer in the S&P 500 Friday, with Frontier Communications Corp. leading the sector higher, gaining 2 percent, while Verizon Communications Inc. dipped just 0.2 percent.
Shares of El Pollo LoCo Holdings Inc. (NASDAQ:LOCO) continued to tumbled Friday, dropping 15 percent, after the Mexican-style chicken chain turned in weaker-than-expected same-store sales.