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U.S. stocks ended lower on Thursday as the rotation out of the high-flying megacap technology stocks continued, while investors closely watched quarterly reports from a large number of companies. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 1.3% or 533.06 points, to end at 40,665.02 points after finishing at an all-time high in the earlier session. The blue-chip index also snapped its six-day winning streak
The S&P 500 gave up 0.8% or 43.68 points, to close at 5,544.59 points. Healthcare and consumer discretionary were the worst performers.
The Health Care Select Sector SPDR (XLV) declined 2.3%. The Consumer Discretionary Select Sector SPDR (XLY) lost 1%. However, the Energy Services Select Sector SPDR (XLE) gained 0.2%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq plummeted 0.7% or 125.70 points to finish at 17,871.22 points.
The fear-gauge CBOE Volatility Index (VIX) was up 10.01% to 15.93. Decliners outnumbered advancers on the NYSE by a 3.43-to-1 ratio. On the Nasdaq, a 3.49-to-1 ratio favored declining issues. A total of 12.14 billion shares were traded on Thursday, higher than the last 20-session average of 11.8 billion.
Broader Market Declines, Led by Tech Selloff
All three major indexes took a hit on Thursday following a series of record closing highs over the past few weeks. The rotation trade over the past week has seen investors dumping high-flying megacap tech stocks for previously left-behind areas of the market.
Thursday’s decline comes just a day after the Nasdaq registered its biggest single-day decline since December 2022.
The dumping of megacap tech stocks in recent times comes on soaring expectations that the Federal Reserve will start its rate cut cycle in September. The optimism surrounding rate cuts has been boosting small-caps and cyclical names, which generally benefit the most from lower borrowing costs.
However, the switch from tech to small caps wasn’t in evidence on Thursday as the selloff appeared to be broader, which saw the small-cap Russell 2000 decline 1.8%. Despite the decline, the Russell 2000 has gained 3.5% in the last five sessions.
Earnings Season Gathers Pace
The second-quarter earnings season is fast gathering pace. On Thursday, the earnings parade continued with a spate of big companies reporting their quarterly results. Shares of Domino's Pizza, Inc. ((DPZ - Free Report) ) tumbled 13.6% after the company reported mixed second-quarter fiscal 2024 results.
The company reported earnings of $4.03 per share, beating the Zacks Consensus Estimate of $3.70 per share. However, it posted revenues of $1.09 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate of $1.1 billion. Domino’s carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Blackstone Inc. ((BX - Free Report) ) reported second-quarter 2024 distributable earnings of $0.96 per share, missing the Zacks Consensus Estimate of $0.99 per share. However, the company’s shares ended 1.2% higher.
Economic Data
The Labor Department reported that jobless claims totaled 243,000 for the week ending Jul 13, increasing 20,000 from the previous week’s revised level of 223,000. The four-week moving average was 234,750, an increase of 1,000 from the previous week’s revised average of 233,750.
Continuing claims came in at 1,867,000, an increase of 20,000 from the previous week’s revised level of 1,847,000. The 4-week moving average was 1,850,500 an increase of 11,500 from the previous week's revised average of 1,839,000.
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Stock Market News for Jul 19, 2024
U.S. stocks ended lower on Thursday as the rotation out of the high-flying megacap technology stocks continued, while investors closely watched quarterly reports from a large number of companies. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 1.3% or 533.06 points, to end at 40,665.02 points after finishing at an all-time high in the earlier session. The blue-chip index also snapped its six-day winning streak
The S&P 500 gave up 0.8% or 43.68 points, to close at 5,544.59 points. Healthcare and consumer discretionary were the worst performers.
The Health Care Select Sector SPDR (XLV) declined 2.3%. The Consumer Discretionary Select Sector SPDR (XLY) lost 1%. However, the Energy Services Select Sector SPDR (XLE) gained 0.2%. Nine of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq plummeted 0.7% or 125.70 points to finish at 17,871.22 points.
The fear-gauge CBOE Volatility Index (VIX) was up 10.01% to 15.93. Decliners outnumbered advancers on the NYSE by a 3.43-to-1 ratio. On the Nasdaq, a 3.49-to-1 ratio favored declining issues. A total of 12.14 billion shares were traded on Thursday, higher than the last 20-session average of 11.8 billion.
Broader Market Declines, Led by Tech Selloff
All three major indexes took a hit on Thursday following a series of record closing highs over the past few weeks. The rotation trade over the past week has seen investors dumping high-flying megacap tech stocks for previously left-behind areas of the market.
Thursday’s decline comes just a day after the Nasdaq registered its biggest single-day decline since December 2022.
The dumping of megacap tech stocks in recent times comes on soaring expectations that the Federal Reserve will start its rate cut cycle in September. The optimism surrounding rate cuts has been boosting small-caps and cyclical names, which generally benefit the most from lower borrowing costs.
However, the switch from tech to small caps wasn’t in evidence on Thursday as the selloff appeared to be broader, which saw the small-cap Russell 2000 decline 1.8%. Despite the decline, the Russell 2000 has gained 3.5% in the last five sessions.
Earnings Season Gathers Pace
The second-quarter earnings season is fast gathering pace. On Thursday, the earnings parade continued with a spate of big companies reporting their quarterly results. Shares of Domino's Pizza, Inc. ((DPZ - Free Report) ) tumbled 13.6% after the company reported mixed second-quarter fiscal 2024 results.
The company reported earnings of $4.03 per share, beating the Zacks Consensus Estimate of $3.70 per share. However, it posted revenues of $1.09 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate of $1.1 billion. Domino’s carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Blackstone Inc. ((BX - Free Report) ) reported second-quarter 2024 distributable earnings of $0.96 per share, missing the Zacks Consensus Estimate of $0.99 per share. However, the company’s shares ended 1.2% higher.
Economic Data
The Labor Department reported that jobless claims totaled 243,000 for the week ending Jul 13, increasing 20,000 from the previous week’s revised level of 223,000. The four-week moving average was 234,750, an increase of 1,000 from the previous week’s revised average of 233,750.
Continuing claims came in at 1,867,000, an increase of 20,000 from the previous week’s revised level of 1,847,000. The 4-week moving average was 1,850,500 an increase of 11,500 from the previous week's revised average of 1,839,000.