We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stocks fell sharply on Friday to finish the week lower and ending their three-week winning streak, despite a rise in retail sales as data showed a decline in consumer sentiment amid worries of rising inflation and a jump in coronavirus cases. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.9% or 299.17 points to end at 34,687.85 points.
The S&P 500 declined 0.8% or 32.87 points to close at 4,327.16 points, as energy and financial stocks took a hit.
The Energy Select Sector SPDR (XLE) decline 2.8%, while the Financials Select Sector SPDR (XLF) fell 1.3%. Seven of the 11 sectors of the benchmark index closed in negative territory.
The fear-gauge CBOE Volatility Index (VIX) was up 8.47% to 18.45. A total of 9.3 billion shares were traded on Friday, lower than the last 20-session average of 10.3 billion. Decliners outnumbered advancers on the NYSE by a 2.42-to-1 ratio. On Nasdaq, a 2.21-to-1 ratio favored declining issues.
Low Consumer Sentiment Take a Toll on Markets
Investors have been feeling jittery despite upbeat corporate earnings data. On Friday University of Michigan’s survey showed a decline in consumer sentiment in the first half of July, which further dented investors’ confidence. The survey shows that consumers now are readying for a 4.8% rise in cost of living this year, the highest since 2008.
The decline comes amid concerns of rising inflation, which has put pressure on the standard of living of millions of middle and lower-middle class people. This has seen people cut down on spending on discretionary goods. The low sentiment took a toll on markets on Friday, with shares plummeting.
Also, despite more people getting vaccinated, rising cases of new COVID-19 infections as the fast spreading of the Delta variant has once again ignited fears in the mind of people. This has been making investors’ shaky once again, thus impacting markets.
Economic Data
The consumer sentiment index from the University of Michigan came in at 80.8% for the first half of July, declining from 85.5 recorded in June.
Meanwhile, retail sales increased 0.6% increase in June, beating analysts’ expectations of a 0.4% decline.
Weekly Roundup
For the week, all three indexes fell, ending their three-week winning streak. The Dow declined 0.5%, while the S&P 500 fell 1%. The Nasdaq slid 1.9% for the week. However, despite this week’s decline, the Dow is still up 13% for the year, while the S&P 500 is up 15% for the year. The Dow and S&P 500 are sitting 1.15% and 1.51%, respectively, from their all-time highs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Jul 19, 2021
U.S. stocks fell sharply on Friday to finish the week lower and ending their three-week winning streak, despite a rise in retail sales as data showed a decline in consumer sentiment amid worries of rising inflation and a jump in coronavirus cases. All the three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) slid 0.9% or 299.17 points to end at 34,687.85 points.
The S&P 500 declined 0.8% or 32.87 points to close at 4,327.16 points, as energy and financial stocks took a hit.
The Energy Select Sector SPDR (XLE) decline 2.8%, while the Financials Select Sector SPDR (XLF) fell 1.3%. Seven of the 11 sectors of the benchmark index closed in negative territory.
The tech-heavy Nasdaq shed 0.8% or 115.90 points to end at 14,427.24 points. Most of the big tech players took a hit with shares of Amazon.com, Inc. (AMZN - Free Report) and Apple, Inc. (AAPL - Free Report) declining 1.6% and 1.4%, respectively. Apple has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The fear-gauge CBOE Volatility Index (VIX) was up 8.47% to 18.45. A total of 9.3 billion shares were traded on Friday, lower than the last 20-session average of 10.3 billion. Decliners outnumbered advancers on the NYSE by a 2.42-to-1 ratio. On Nasdaq, a 2.21-to-1 ratio favored declining issues.
Low Consumer Sentiment Take a Toll on Markets
Investors have been feeling jittery despite upbeat corporate earnings data. On Friday University of Michigan’s survey showed a decline in consumer sentiment in the first half of July, which further dented investors’ confidence. The survey shows that consumers now are readying for a 4.8% rise in cost of living this year, the highest since 2008.
The decline comes amid concerns of rising inflation, which has put pressure on the standard of living of millions of middle and lower-middle class people. This has seen people cut down on spending on discretionary goods. The low sentiment took a toll on markets on Friday, with shares plummeting.
Also, despite more people getting vaccinated, rising cases of new COVID-19 infections as the fast spreading of the Delta variant has once again ignited fears in the mind of people. This has been making investors’ shaky once again, thus impacting markets.
Economic Data
The consumer sentiment index from the University of Michigan came in at 80.8% for the first half of July, declining from 85.5 recorded in June.
Meanwhile, retail sales increased 0.6% increase in June, beating analysts’ expectations of a 0.4% decline.
Weekly Roundup
For the week, all three indexes fell, ending their three-week winning streak. The Dow declined 0.5%, while the S&P 500 fell 1%. The Nasdaq slid 1.9% for the week. However, despite this week’s decline, the Dow is still up 13% for the year, while the S&P 500 is up 15% for the year. The Dow and S&P 500 are sitting 1.15% and 1.51%, respectively, from their all-time highs.