PayPal Stock Drops as Index Retreats From Record

Major U.S. equity indexes moved lower as markets wrapped up the third quarter’s first full week of trading.

Trade policy remained in focus heading into the weekend, with Canada among the latest countries to receive a letter from President Donald Trump about tariffs set to take effect in August.

The S&P 500 slipped 0.3% on Friday, retreating from the record closing high set in the previous session. The Nasdaq also fell from record levels, ticking 0.2% lower, while the Dow dropped 0.6%. Read Investopedia’s full coverage of today’s trading here.

PayPal (PYPL) shares fell 5.7%, retreating the most of any S&P 500 constituent. The payment processor’s stock came under pressure following reports that JPMorgan Chase (JPM) plans to begin charging financial technology companies for access to customer data. The move from the largest U.S. bank could have ripple effects as fintechs face fees for data that they previously received without direct charges.

The re-escalation in trade tensions between the U.S. and Canada weighed on stocks with exposure to the northern neighbor. Shares of human resources software provider Dayforce (DAY) lost 5.2%. In addition to operating headquarters in Toronto as well as Minneapolis, Dayforce has a significant business presence in Canada, including a recently inked contract with the Canadian government. Analysts have suggested that tariff-related impacts on its operations should be limited.

Caesars Entertainment (CZR) shares declined 4.7%, giving back a portion of the gains posted in the prior session. Casino stocks came under pressure after regional gaming revenue reports from Indiana and Iowa showed that gaming win totals for casinos in those states were down year-over-year in June.

Shares of United Airlines (UAL) sank 4.3%, adjusting their altitude a day after posting the S&P 500’s strongest gains with a double-digit surge. Although a strong earnings report and reinstated guidance from Delta (DAL) boosted sentiment around airline stocks this week, Democratic Senator Richard Blumenthal reportedly expressed concerns that a proposed partnership between United and JetBlue (JBLU) could be harmful to competition.  

Crude oil futures prices rose about 3% on Friday, with summer travel demand helping sustain the market as forecasts suggest that supply growth could lead to surplus conditions later in the year. Shares of oilfield services firm Halliburton (HAL) advanced 4.2%, notching the top daily performance in the S&P 500, as TD Cowen analysts lifted their price target on the stock. Shares of Halliburton rival Baker Hughes (BKR) added 2.5%.

The Wall Street Journal reported that packaged food giant Kraft Heinz (KHC) is preparing for a restructuring plan that could involve spinning off a significant portion of its grocery business. Shares of the company, home to its namesake cheese and ketchup as well as an array of other well-known brands, gained 2.5%. News of the potential break-up of Kraft Heinz came a day after cereal maker WK Kellogg (KLG) said it had been acquired by Italian sweets company The Ferrero Group.