- Rising oil prices support the energy supply
- Durable goods awaiting home sales will surprise on the upside
- Indices fell: Dow 0.2%, S&P 0.3%, Nasdaq 0.8%
NEW YORK, June 27 (Reuters) – US stocks closed lower on Monday, with multiple catalysts affecting investor sentiment as they near the middle of a year that has left equity markets buoyed by heightened inflation fears and a tightening of Fed policy were hit. . Continue reading
Major US stock indexes lost ground after swings earlier in the session, with interest-rate-sensitive megacaps like Amazon.com (AMZN.O), Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) weakening as the main drag.
“The reason for the disorientation this week and next is that investors are waiting to see what will happen in the second quarter of the reporting period,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
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All three indices are on track to post two consecutive quarterly declines for the first time since 2015. They also appear to be posting losses in June, which would see the techy Nasdaq down for three straight months, its longest losing streak since 2015.
S&P was on track to report its fifth-worst decline since 1962 on Friday, Stovall said.
“Each time the SPX rose more than 20% per year, it fell an average of 11%, starting relatively early in the new year. And all those years where the decline started in the first half of the year returned to a breakthrough a year ago.”
“There’s no guarantee that will happen this year, but the market could surprise us on the upside,” Stovall said.
Rising oil prices have helped push energy stocks (.SPNY) to prominence, while economically sensitive small capitals (.RUT) and semiconductors (.SOX) and transportation (.DJT) have also outperformed the broader market.
Economic data surprised to the upside, with new orders for consumer discretionary and pending home sales beating expectations, adding credence to Federal Reserve Chair Jerome Powell’s claim that the economy was resilient enough to resist attempts by the central bank to to keep high inflation under control for decades slipping into recession. Continue reading
A trader works at the New York Stock Exchange (NYSE) in New York, U.S., June 22, 2022. REUTERS/ Brendan McDermid
The Dow Jones Industrial Average (.DJI) fell 62.42 points, or 0.2%, to 31,438.26, the S&P 500 (.SPX) lost 11.63 points, or 0.3%, to 3,900.11 and the Nasdaq Composite (.IX05) dropped 93 points. 0.8% to 11,514.57.
Of the 11 major sectors in the S&P 500 Index, eight ended the session in negative territory, with the consumer discretionary (.SPLRCD) sector suffering the largest percentage loss. Energy stocks were the clear winners, gaining 2.8% on the day.
There are still a few weeks until the start of the report for the second quarter, 130 companies from the S&P 500 index have announced in advance. Of those, 45 were positive and 77 negative, resulting in a negative/positive ratio of 1.7, stronger than in the first quarter but weaker than a year ago, according to Refinitiv.
In extended trading, Robinhood Markets (HOOD.O) fell 4% after FT Bank’s Sam Bankman-Fried said its crypto exchange was not in active M&A talks with the retail stock trading platform.
In an earlier trading session, Robinhood rose 14% after Bloomberg announced that FTX was reviewing the deal. Continue reading
During Monday’s show, Coinbase Global Inc. (COIN.O) fell more than 10% after Goldman Sachs downgraded the cryptocurrency exchange from “buy” to “sell.”
Advancing issuance outperformed declining issuance by 1.17:1 on the NYSE; on the Nasdaq, the 1.02 to 1 ratio suggested a decline.
The S&P 500 posted a new 52-week high and 29 new lows; The Nasdaq Composite posted 24 new highs and 84 new lows.
Volume on US exchanges was 10.91 billion shares versus an average of 12.95 billion over the past 20 trading days.
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Stephen Culp Report; additional reports from Shreyashi Sanyal and Amruta Khandekar in Bengaluru and from Noel Randewich in Oakland, California; edited by Grant McCool
Our standards: Thomson Reuters Trust Principles.
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