The Dow Jones and Nasdaq Composite remained in negative territory late Thursday. But both indices pared losses and exchanged intraday lows, but ultimately closed lower.
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Nasdaq lags, small caps lead
At the close, the Dow Jones Industrial Average was down 0.8%, while the S&P 500 was down 0.9%. The Nasdaq fell 1.3%, with technology stocks remaining under pressure. Small caps were the best performers, with the Russell 2000 slipping 0.6% after leading Wednesday’s decline. According to early data, volume was lower on the Nasdaq and higher on the NYSE than at Wednesday’s close.
As the last trading day of June drew to a close, indices posted notable losses for the month. The Nasdaq is down 8.7% month-to-date; the S&P 500 is down 8.4% and the Dow Jones is down 6.6%. Year-to-date losses are much steeper. For the S&P 500, the index was down 20.6% through Thursday’s close and had its worst first half since 1970. The Nasdaq is down 29.4% and Russell 2000 is down 23.9%. According to Dow Jones Market Data, both indices had their worst first half year since records began.
Thursday also marked the first time the 10-year yield fell below 3% in almost a month. The 10-year yield fell to 2.97% in afternoon trade.
Meanwhile, Bitcoin is also on the way to heavy losses. The cryptocurrency lost around 58% of its value in the second quarter. This was the worst quarterly loss in more than a decade. Bitcoin fell from $45,524 at the start of the quarter to around $18,000 on Thursday, the last day of the second quarter, according to CoinDesk.
coin base (COIN) down 5.4% Riot Blockchain (RIOT) declined 6.8%.
The personal consumption price index was released early Thursday, showing a 0.6% gain for the month of May. That index, which is also the Federal Reserve’s preferred measure of inflation, was up 6.3% year over year. Both numbers were slightly lower than expected, according to Econoday estimates. Personal income rose 0.5% in May, according to estimates.
Among the sectors of the S&P 500, the energy sector led the decline for the second straight day. US crude oil was also trading lower on Thursday, down over 3.6% to just under $106 a barrel. On the positive side, the defensive utilities sector outperformed.
Shares in the IBD 50
Solar energy stocks led the rise in the growth-oriented IBD 50 Index. Both Enphase Energy (ENPH) and Daqo New Energy (DQ) outperformed with gains of 5.7% and 6.3% respectively.
Enphase Energy recaptured its 21-day moving average in above-average volume as the stock neared a handle buy point of 217.33. The stock is also approaching a down sloping trendline entry. Daqo remains extended beyond the 20% gain zone from a buy point of 53.70. It is also well above the 50-day and 21-day exponential moving averages.
On the other hand shares of Just good food (SMPL) fell nearly 9% in afternoon trade. Earnings were released early Thursday and provided fuel for sales. Although the report beat analysts’ expectations for both sales and earnings, the forecast was disappointing.
Another loser in the IBD 50, HealthEquity (HQY) is down 3.3% and slipped below its 50-day moving average as it tried to forge a handle. The first phase cup-and-handle base shows a buy point of 71.04. Investors should watch if HealthEquity can find support at the 50-day moving average and move higher.
Dow Jones stocks move: Apple and Walgreens fall
Research firm Gartner said on Thursday it expects global cellphone shipments in 2022 to fall 7.1% from a year earlier. But iPhone manufacturers Apple (AAPL) has “avoided major construction cuts,” according to analysts at Loop Capital Markets. Meanwhile, South Korea-based Samsung slashed its 2022 smartphone build orders by at least 25 million units. Apple shares lost around 1.8%.
But Apple was far from being the worst-performing stock on the Dow Jones today. Walgreens (WBA) led the move down 7.3% after the earnings were announced. The drugstore chain beat Wall Street expectations for its third-quarter earnings per share as online sales soared in the U.S., but its quarterly sales fell after being hit by falling demand for Covid-19 vaccines.
Follow Rachel Fox on Twitter at@IBD_Rfox for more Dow Jones and stock market commentary.