MARKET SNAPSHOT: Stocks Retreat From Records As Apple Leads Abrupt Tech Selloff; Nasdaq Lower
Gains in energy, financials limit the broader market's decline
U.S. stocks came off their highs of the session on Friday, with the Nasdaq reversing an early gain that took it to a record as the technology sector abruptly turned lower in afternoon trading, something analysts credited to profit-taking after recent strength.
The Dow Jones Industrial Average rose 87 points, or 0.4%, to 21,270. The S&P 500 added 6 points to 2,440, a rise of 0.2%. The Nasdaq Composite Index fell 35 points to 6,287, a decline of 0.6%.
All three had hit intraday records in morning trading, but the sudden tech retreat pushed the Nasdaq into negative territory for the week. It had previously looked to close with a gain of 0.5% for the week; currently, it is looking at a decline of 0.4%. Both the Dow and the S&P remained in slightly positive territory for the week.
Apple Inc. (AAPL) tumbled 2.6%, weighing on the overall technology sector, which fell 1.2%. Other major tech stocks were also sharply lower. Facebook Inc.(FB) fell 1.4% while Alphabet Inc. (GOOGL), the parent of Google, was down 1.2%.
All three stocks have been among the biggest boosts to the market in 2017, gaining more than 25%.
"All these stocks have hit new highs recently, so now people are taking a pause and we're seeing the money flow out," said Doug DePietro, managing director for trading at Evercore ISI. "There's nothing in the news that's saying, 'sell the big tech stocks'; this is just simple profit-taking, a rotation to other names."
The Russell 2000 index of small-cap shares rose 1% on Friday, bringing its week-to-date gain to 1.7%.
The tech decline had an outsize drag on the Nasdaq, which is heavily weighted towards the sector. The Dow and S&P remained in positive territory due to the energy and financial industries, both of which advanced on the day. Energy shares gained 2.1% while financials (XLF) were up 1.8%. Goldman Sachs Group Inc.(GS), Morgan Stanley (MS) and Bank of America Corp.(BAC) all climbed more than 2%.
Exxon Mobil added 1.2% while Chevron Corp.(CVX) was up 2%.
See:'Worst possible outcome'--analysts react to U.K. early election results (http://www.marketwatch.com/story/worst-possible-outcome-analysts-react-to-uk-early-election-results-2017-06-08)
Next up, Fed meeting: Traders see a 95.8% probability of a U.S. interest rate increase at the conclusion of the Federal Reserve's two-day policy meeting next week on June 14, CME Group's FedWatch showed (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/).
The only top-tier economic data scheduled for release Friday is an update on wholesale inventories for April, due at 10 a.m. Eastern Time.
Stocks on the move: Shares of Endo International PLC(ENDP) slumped 14% after the Food and Drug Administration late Thursday said it asked the company to stop selling its opioid pain medication (http://www.marketwatch.com/story/fda-asks-endo-to-stop-selling-opioid-in-first-such-move-2017-06-08), reformulated Opana ER, citing concerns about abuse.
DuPont Fabros Technology Inc.(DFT) soared 10% after the developer and operator of multi-tenant data centers announced a deal to be purchased by (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09)Digital Realty Trust Inc (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09).(DLR) Digital Realty was down 3.3%.
Shares of Nvidia Corp.(NVDA) sank 4.1% after a price target upgrade by Citi, to $180, the highest on Wall Street (http://www.marketwatch.com/story/nvidia-shoots-to-record-after-citi-establishes-street-high-target-2017-06-08).
Other markets: The British pound sank to a seven-week low against the dollar, dropping to $1.2765 from $1.2957 in late trading on Thursday. The dollar was firmer across the board (http://www.marketwatch.com/story/dollar-rises-pound-hits-7-week-low-as-uk-heads-for-hung-parliament-2017-06-09), with the U.S. dollar index , which compares the dollar to a half-dozen major rivals, up 0.5%.
Crude oil prices (http://www.marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09) traded higher, while gold edged lower.
In Asia (http://www.marketwatch.com/story/nikkei-returns-to-20000-as-asian-markets-warily-eye-uk-election-2017-06-08), the Nikkei 225 index gained on yen weakness, returning to the 20,000 level, with other markets mixed.
(END) Dow Jones Newswires
June 09, 2017 13:10 ET (17:10 GMT)