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The Dow and the S&P 500 snapped their two-day winning streak to close in the red, while the Nasdaq hit a new record high on Wednesday, as investors shifted focus on inflation. Also, a record peak in U.S. factory activity somewhat gave a boost to investors’ confidence.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.2% or 71.34 points to close at 33,874.24 points, snapping its two-day winning streak.
The S&P 500 dropped 0.1% or 4.60 points to end at 4,241.84 points, falling just short of its last week’s record closing high of 4,255.15. The benchmark index is just 0.4% away from an all-time high now. While consumer discretionary stocks put up a great show, most other sectors ended in the red.
The Consumer Discretionary Select Sector SPDR (XLF) gained 0.8%, while Utilities Select Sector SPDR (XLU) and Materials Select Sector SPDR (XLB) shed 1.1% and 0.6%, respectively. Eight of the 11 sectors of the benchmark index closed in negative territory.
The tech-heavy Nasdaq advanced 0.1% or 18.46 points to finish at 14,271.73 points, closing at a new record high. At one point of the day, the index had climbed as much as 14,317.66 points. Shares of Tesla, Inc. (TSLA - Free Report) jumped 5.3%, while Netflix, Inc. (NFLX - Free Report) gained 0.8%%. Tesla carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 2.04% to 16.32. A total of 9.3 billion shares were traded on Wednesday, lower than the last 20-session average of 11.1 billion. Advancers outnumbered decliners on the NYSE by a 1.14-to-1 ratio. On Nasdaq, a 1.42-to-1 ratio favored advancing issues.
Investors Still Worried
Fed Chair Jerome Powell testified on Tuesday before the House select subcommittee on the coronavirus pandemic wherein he reiterated that inflation pressures will be temporary. His remarks were cheered, which sent stocks on a rally on Tuesday.
However, stocks failed to find direction on Wednesday as investors are now trying to examine how long higher prices will last. Also, investors have been weighing the power of reopening and how long will it take for the economy to rebound. This somewhat left them confused, with the Dow and S&P 500 ending the day marginally lower.
That said, tech stocks continued to support the broader market that also saw the Nasdaq closing at yet another record high.
Economic Data
Economic data came in mixed on Wednesday. U.S. Current Accounted deficit jumped 11.7% to $195.7 billion in the first quarter.
Separately, the Commerce Department said that new home sales in the United States declined 5.9% to a seasonally adjusted annual rate of 769,000 in May, hitting it lowest level since May 2020.
The IHS Markit flash manufacturing PMI climbed to 62.6 in June from 62.1 a month ago. However, flash services PMI declined to 64.8 in June from 70.4 in May.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Bigstock
Stock Market News for Jun 24, 2021
The Dow and the S&P 500 snapped their two-day winning streak to close in the red, while the Nasdaq hit a new record high on Wednesday, as investors shifted focus on inflation. Also, a record peak in U.S. factory activity somewhat gave a boost to investors’ confidence.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.2% or 71.34 points to close at 33,874.24 points, snapping its two-day winning streak.
The S&P 500 dropped 0.1% or 4.60 points to end at 4,241.84 points, falling just short of its last week’s record closing high of 4,255.15. The benchmark index is just 0.4% away from an all-time high now. While consumer discretionary stocks put up a great show, most other sectors ended in the red.
The Consumer Discretionary Select Sector SPDR (XLF) gained 0.8%, while Utilities Select Sector SPDR (XLU) and Materials Select Sector SPDR (XLB) shed 1.1% and 0.6%, respectively. Eight of the 11 sectors of the benchmark index closed in negative territory.
The tech-heavy Nasdaq advanced 0.1% or 18.46 points to finish at 14,271.73 points, closing at a new record high. At one point of the day, the index had climbed as much as 14,317.66 points. Shares of Tesla, Inc. (TSLA - Free Report) jumped 5.3%, while Netflix, Inc. (NFLX - Free Report) gained 0.8%%. Tesla carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was down 2.04% to 16.32. A total of 9.3 billion shares were traded on Wednesday, lower than the last 20-session average of 11.1 billion. Advancers outnumbered decliners on the NYSE by a 1.14-to-1 ratio. On Nasdaq, a 1.42-to-1 ratio favored advancing issues.
Investors Still Worried
Fed Chair Jerome Powell testified on Tuesday before the House select subcommittee on the coronavirus pandemic wherein he reiterated that inflation pressures will be temporary. His remarks were cheered, which sent stocks on a rally on Tuesday.
However, stocks failed to find direction on Wednesday as investors are now trying to examine how long higher prices will last. Also, investors have been weighing the power of reopening and how long will it take for the economy to rebound. This somewhat left them confused, with the Dow and S&P 500 ending the day marginally lower.
That said, tech stocks continued to support the broader market that also saw the Nasdaq closing at yet another record high.
Economic Data
Economic data came in mixed on Wednesday. U.S. Current Accounted deficit jumped 11.7% to $195.7 billion in the first quarter.
Separately, the Commerce Department said that new home sales in the United States declined 5.9% to a seasonally adjusted annual rate of 769,000 in May, hitting it lowest level since May 2020.
The IHS Markit flash manufacturing PMI climbed to 62.6 in June from 62.1 a month ago. However, flash services PMI declined to 64.8 in June from 70.4 in May.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>