MARKET SNAPSHOT: Dow, S&P 500 Notch Best First-half Performance Since 2013
Stocks end mostly higher, booking tech-fueled weekly loss
U.S. stocks closed modestly higher Friday after trimming gains in the last few minutes of the session. However, steep losses in technology and health-care stocks earlier in the week resulted in poor weekly and mixed monthly performances for all three benchmarks.
Still, the main benchmarks posted solid quarterly gains, while the S&P 500 index and Nasdaq Composite (http://www.marketwatch.com/story/nasdaq-composite-on-track-for-its-best-first-six-months-of-a-year-since-2009-2017-06-30) ended their first half of the year with the largest gains in several years.
Next week, equity trading will be shortened by the Independence Day holiday on Tuesday (http://www.marketwatch.com/story/july-4th-which-markets-are-closed-2017-06-30).
The S&P 500 rose 3.71 points, or 0.2%, to 2,423.41, with six of the 11 main sectors closing higher. The index ended the week with a 0.6% loss, but still booked a 0.5% monthly and 2.6% quarterly gain. For the first half of the year, the index rose 8.2%.
"The market has been resilient in the face of realization that perhaps no fiscal stimulus is forthcoming this year. This means that impressive gains in the S&P 500 this year were not about Trump or the tax cuts, but about underlying fundamentals and the economy," said Mike Antonelli, equity sales trader at Robert W. Baird & Co.
The Dow Jones Industrial Average added 62.60 points, or 0.3%, to 21,349.63, buoyed in part by a jump in shares of Nike Inc., which rallied 11%, its best one-day percentage gain since September 2014.
The index ended the week roughly 0.2% lower, but booked hefty monthly and quarterly gains, at 1.6% and 3.3%, respectively. The index ended the first half of the year 8% higher.
Read:Here's why the stock market is spooked by central bankers (http://www.marketwatch.com/story/heres-why-the-stock-market-is-spooked-by-central-bankers-trump-agenda-delays-2017-06-29)
Meanwhile, the Nasdaq Composite Index failed to hold on to earlier gains, ending 3.92 points, or less than 0.1%, lower at 6,140.42. The index ended the week 2% lower and booked a 0.9% monthly loss, thanks to recent selloffs in technology stocks. Still, Nasdaq Composite is up 3.9% over the past quarter and up 14.1% since the start of the year, its best half-year performance since 2009 (http://www.marketwatch.com/story/nasdaq-composite-on-track-for-its-best-first-six-months-of-a-year-since-2009-2017-06-30).
"When you get extended rallies, the kind we saw in technology shares, prices tend to come down a lot faster. Though, when markets drop 1%, it's hardly a selloff," said Joe Saluzzi, partner, co-head of equity trading at Themis Trading.
"It is still perplexing to see the stock market climb to highs when the bond market is signaling a slowdown. One of these markets is not right," Saluzzi said.
Check out:It has been an ugly first half for commodities in 2017 (http://www.marketwatch.com/story/its-been-an-ugly-first-half-for-commodities-in-2017-2017-06-29)
And read:Dollar bulls have a lot to worry about in second half of 2017 (http://www.marketwatch.com/story/dollar-bulls-have-a-lot-to-worry-about-in-second-half-of-2017-2017-06-29)
Economic docket: In data, spending in May was barely higher, as Americans chose to save more money instead. Meanwhile, consumer inflation also slowed, conflicting with the Federal Reserve's assessment of transitory sluggishness in prices.
Consumer spending (http://www.marketwatch.com/story/consumer-spending-is-weak-in-may-but-so-is-inflation-2017-06-30)rose 0.1% last month after back-to-back 0.4% gains in April and March, matching expectations by economists polled by MarketWatch.
The PCE index, the Federal Reserve's preferred inflation gauge, fell 0.1% to mark the second decline in three months. Expectations for a 0.1% increase.
The Chicago business barometer, or Chicago PMI, for June came in at 65.7, above the consensus reading of 58.0. A reading of at least 50 indicates growth.
The University of Michigan's final June update on consumer sentiment for the month was at 95.1, compared with the Wall Street consensus estimate of 94.5.
Stocks in focus: Nike shares sprang up 11% after the sportswear giant late Thursday posted better-than-expected quarterly profit and sales (http://www.marketwatch.com/story/nike-jumps-7-premarket-after-earnings-beat-amazon-deal-2017-06-30). Nike also confirmed a deal to sell shoes through Amazon.com Inc (http://www.marketwatch.com/story/nike-confirms-deal-to-sell-shoes-through-amazon-2017-06-29). (AMZN).
Shares of home builders attracted buyers, pushing up prices sharply. D.R. Horton Inc(DHI) was up 2.2%, while PulteGroup Inc.(PHM) gained 2%.
Bank of America Corp.(BAC) declined 0.3% even after Warren Buffett's Berkshire Hathaway Inc. (BRKA) said it would exercise warrants to buy 700 million shares (http://www.marketwatch.com/story/warren-buffetts-berkshire-hathaway-to-exercise-warrants-to-buy-700-mln-bank-of-america-shares-2017-06-30) of the bank's common stock when the lender's dividend increase goes into effect.
Other markets: The ICE Dollar Index , which measures the buck against a basket of six currencies, was flat at 95.654, while gold slipped 0.3%.
Asian stocks dropped sharply (http://www.marketwatch.com/story/nikkei-dives-under-20000-as-asian-markets-sharply-pull-back-2017-06-29) as the central bank-spurred bond selloff spread to the region (http://www.marketwatch.com/story/bond-selloff-spreads-to-asia-with-japanese-yields-at-multimonth-high-2017-06-30). European stocks gave up earlier gains to end lower (http://www.marketwatch.com/story/european-stocks-inch-higher-after-sharpest-selloff-in-9-months-2017-06-30).
U.S. oil futures rallied Friday to register a seventh straight session gain, settling 2.5% higher above $46 a barrel. The yield on the 10-year Treasury note rose 3 basis points to 2.3%, the highest level since May 16.
(END) Dow Jones Newswires
June 30, 2017 16:41 ET (20:41 GMT)