US Stock Market Indexes Finish Short Week Lower, Volume Light
$IBB, $USO, $CNC, $HNT
DJIA -0.5% YTD, NAS +5.8% YTD, S&P 500 +0.8% YTD, Russell 2000 +3.6% YTD
DJIA -27.80 at 17730.11, NAS 100 -3.91 at 5009.21, S&P 500 -1.14 at 2076.41
Volume: trade Thursday was below average with about 700-M/shares exchanging hands on the NYSE.
The US major stock market indexes ended the shortened trading week on a cautious note.
The S&P 500 shed 0.1%, widening its weekly decliner to 1.2%, small cap stocks saw aggressive selling, the Russell 2000 losing 0.7% finished the week lower by 2.5%.
Equity indices held modest gains at the start after the NFPs report for June missed. The lack of wage growth was viewed as an argument in favor of the Fed delaying its 1st rate hike, evidenced by a rise in the US Treasury market. The 10-yr T-Note backed away from its highs into the close, but ended in the Green with the benchmark yield slipping 4 bpts to 2.38%.
The International Monetary Fund (IMF) said that Greece will need approximately EUR50-B in funds over the next 2 yrs and that a 20-yr grace period should take place before any repayment begins. The comments from the IMF are likely to galvanize the ‘No’ camp ahead of Sunday’s referendum in Greece.
6 of the 10 stock sectors finished the day in the Red
The energy (+0.4%), technology (+0.2%), telecom services (+0.3%), and utilities (+1.4%) posted gains.
The energy stock sector was able to end in the Green even as Crude Oil ended the pit session unchanged at 56.93 bbl. On the week, WTI Crude Oil lost 4.5%, the energy sector lost 1.9%.
The cyclical stock groups
The technology stock sector (+0.2%) struggled early, but rallied into the close.Chipmakers led the afternoon rebound with the PHLX Semiconductor Index adding 0.5%.
Health Net (NYSE:HNT) 71.57, +6.51, or +10.0% after agreeing to be acquired by Centene (NYSE:CNC) 74.44, -6.46 for 78.57/share in cash and stock, a 21.0% premium to Wednesday’s closing price.
The broad healthcare stock sector (-0.3%) lagged, biotech names finished little changed.
iShares Nasdaq Biotechnology ETF (NYSEArca:IBB) finished at 370.17, +0.27, or + 0.1%.
Economic data
- NFPs missed, adding 223,000 jobs in June after adding a revised 254,000 from 280,000 in May, consensus expected an increase of 230,000
- The initial claims level increased to 281,000 for the week ending 27 June from an unrevised 271,000, consensus expected an increase to 271,000
- Factory orders declined 1.0% in May following a revised -0.7% from -0.4% decline in April while the consensus expected a decline of 0.5%
Monday
The ISM Services Index for June released at 10:00a EDT
Have a terrific holiday weekend.
HeffX-LTN
Paul Ebeling
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