US Stock Indexes Finished Lower On Moderate Volume

$ITB, $HCA, $THC, $UHS, $GE, $CAT, $CREE, $AET, $HUM, $CMCSA, $TWX, $ARMH

DJIA +0.4% YTD, NAS 100 +7.9% YTD, S&P 500 +2.1% YTD, Russell 2000 +6.5% YTD

DJIA -75.71 at 17890.36, NAS 100-10.22 at 5112.19, S&P 500 -6.27 at 2102.31

Volume: trade tallied just over 750-M/shares on the NYSE.

The US stock market finished lower Thursday with the S&P 500 (-0.3%) below its 50-Day MA at 2,107.

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The healthcare stock sector (+0.5%) was positive after the US Supreme Court upheld federal subsidies to Barack Obamacare (Affordable Care Act).

Hospital names benefited from the news

Tenet Healthcare (NYSE:THC) 56.21, +6.13, HCA (NYSE:HCA) 90.72, +7.35, and Universal Health (NYSE:UHS) 140.82, +10.14 rising between 7.8% and 12.2%.

Humana (NYSE:HUM) 197.37, +13.14, or + 7.1% on a report the company received a takeover offer from Aetna (NYSE:AET) 132.60, +5.09.

The consumer discretionary stock sector (-0.1%) settled just below its flat line, but ahead of other cyclical groups.

Media names like Comcast (NASDAQ:CMCSA) 60.88, +0.52, and Time Warner (NYSE:TWX) 88.20, +1.10 posted gains close to 1.0% each.

Homebuilders finished ahead of the broad market

iShares Dow Jones US Home Construction ETF (NYSEArca:ITB) 27.96, +0.04) adding 0.1%.

The financial stock sector (-0.7%) under performed Thursday, and the growth-sensitive group is now down 0.5% for the week Vs a 0.4% WTD decline for the S&P 500. Similar to financials, energy (-1.0%) and industrials (-0.8%) lagged throughout the day.

The energy stock sector struggled on commodity weakness as Crude Oil fell 0.8% to 59.73 bbl. Thursday’s decline widened the energy sector’s June loss to 2.7%, which puts the group only ahead of the utilities sector (-0.7%). The rate-sensitive sector has given up 6.0% MTD.

The industrial stock sector endured losses among large cap names like General Electric (NYSE:GE) 27.04, -0.22, and Caterpillar(NYSE:CAT) 86.72, -1.45.

The Dow Jones Transportation Average (-0.9%) extended this week’s decliner to 2.1%. The complex posted a fresh low for the month near marks that have not been seen since late October.

The top-weighted technology stock sector (-0.3%) ended in-line with the broader market, but that masked modest strength among chipmakers.

The PHLX Semiconductor Index shed 0.1%, but ARM Holdings (NASDAQ:ARMH) 53.86, +1.09 rallied 2.1% to a 2-month high.

Cree (NASDAQ:CREE) 27.51, -3.05 or -10.0% after issuing below-consensus guidance and announcing plans to restructure its LED business.

US Treasuries spent the day in the Red, the 10-yr yield ended higher by 2 bpts at 2.40%.

Economic data

  • The initial claims level increased to 271,000 for the week ending June 20 from an upwardly revised 268,000 (from 267,000) while the Briefing.com consensus expected an increase to 271,000.
  • Personal income increased 0.5% for a second consecutive month in May while the Briefing.com consensus expected an increase of 0.4%

Friday

The final reading of the Michigan Sentiment Survey (MSI) for June will be released at 10:00a EDT (consensus 94.6).

Stay tuned…

HeffX-LTN

Paul Ebeling

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