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.
The Dow and the S&P 500 closed in the red on Wednesday as spike in new coronavirus cases spurred the possibility of a new round of lockdown measures that dampened investors’ sentiment. However, rally among technology shares helped the Nasdaq close higher and within half a percentage point of its all-time closing high achieved on Jun 10.
The Dow Jones Industrial Average (DJI) slid 170.37 points, or 0.7%, to close at 26,119.61 and the S&P 500 fell 11.25 points, or 0.4% to close at of 3,113.49. While, the Nasdaq Composite Index closed at 9,910.53, adding 14.66 points, or 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 0.6%, to close at 33.47. Declining issues outnumbered advancing ones for 1.47-to-1 ratio on the NYSE and a 1.33-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
On Wednesday, the Nasdaq notched up 0.2% closing at 9,910.53, which hovered only half a percentage point of its all-time closing high reached on Jun 10. Significant advance in big-tech’s boosted the tech-heavy Nasdaq. Shares of Amazon.com, Inc. (AMZN - Free Report) rose nearly 1%, while Netflix, Inc. (NFLX - Free Report) and Alphabet Inc. (GOOGL - Free Report) rose 2.7% and 0.4% respectively.
Only three of the 11 major S&P 500 sectors ended in the green, as the consumer discretionary, technology and communication services sector rose more than 0.3%. The broader index’s decline was weighed over by a 3.3% slide in the energy sector.
Overall, the S&P 500 posted nine new 52-week highs and no new lows, while the Nasdaq Composite recorded 86 new highs and four new lows.
Prospects of New Round of Lockdowns Weighs over Wall Street
Coronavirus cases have been resurging across the globe. In the United States more than 2.1 million of confirmed cases have been reported so far. Nearly six U.S. states have reported a spike in new cases as the states started to reopen. On the other hand, Beijing has also canceled several domestic flights and several cities in China have shut down schools amid resurgence of new coronavirus cases.
Rise in cases have dampened investor optimism over signs of economic recovery, as worries of a potential new round of economic lockdown lingered. All industries that would benefit from the economy reopening were under pressure on Jun 18 and led the Dow and the S&P 500 close in the negative territory. Shares of retailers, Nordstrom, Inc. (JWN - Free Report) and The Gap, Inc. (GPS - Free Report) plunged nearly 5.4% on Wednesday.
Airlines shares dipped as United Airlines Holdings, Inc. (UAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) slipped 2.4% and 1.9%. While share of Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) plunged 8.4% after the cruise liners extended suspension of its voyages through September.
Economic Data
On Jun 17, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that housing starts in May increased at a slower-than-expected pace of 974,000. The revised figure for the last month rose to 934,000, but May’s figure is lower than the consensus estimate of 1,119,000.
Additionally, building permits in May grew at a rate of 1,220,000, which is 14.4% above the revised 1,066,000 permits in April. In a separate report from the U.S. Commerce Department and the Mortgage Bankers Association, building permits made a robust rebound and applications for loans to purchase homes surged last week to a near 11-1/2-year high last week.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Image: Bigstock
Stock Market News for Jun 18, 2020
The Dow and the S&P 500 closed in the red on Wednesday as spike in new coronavirus cases spurred the possibility of a new round of lockdown measures that dampened investors’ sentiment. However, rally among technology shares helped the Nasdaq close higher and within half a percentage point of its all-time closing high achieved on Jun 10.
The Dow Jones Industrial Average (DJI) slid 170.37 points, or 0.7%, to close at 26,119.61 and the S&P 500 fell 11.25 points, or 0.4% to close at of 3,113.49. While, the Nasdaq Composite Index closed at 9,910.53, adding 14.66 points, or 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 0.6%, to close at 33.47. Declining issues outnumbered advancing ones for 1.47-to-1 ratio on the NYSE and a 1.33-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
On Wednesday, the Nasdaq notched up 0.2% closing at 9,910.53, which hovered only half a percentage point of its all-time closing high reached on Jun 10. Significant advance in big-tech’s boosted the tech-heavy Nasdaq. Shares of Amazon.com, Inc. (AMZN - Free Report) rose nearly 1%, while Netflix, Inc. (NFLX - Free Report) and Alphabet Inc. (GOOGL - Free Report) rose 2.7% and 0.4% respectively.
Netflix sports aZacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Only three of the 11 major S&P 500 sectors ended in the green, as the consumer discretionary, technology and communication services sector rose more than 0.3%. The broader index’s decline was weighed over by a 3.3% slide in the energy sector.
Overall, the S&P 500 posted nine new 52-week highs and no new lows, while the Nasdaq Composite recorded 86 new highs and four new lows.
Prospects of New Round of Lockdowns Weighs over Wall Street
Coronavirus cases have been resurging across the globe. In the United States more than 2.1 million of confirmed cases have been reported so far. Nearly six U.S. states have reported a spike in new cases as the states started to reopen. On the other hand, Beijing has also canceled several domestic flights and several cities in China have shut down schools amid resurgence of new coronavirus cases.
Rise in cases have dampened investor optimism over signs of economic recovery, as worries of a potential new round of economic lockdown lingered. All industries that would benefit from the economy reopening were under pressure on Jun 18 and led the Dow and the S&P 500 close in the negative territory. Shares of retailers, Nordstrom, Inc. (JWN - Free Report) and The Gap, Inc. (GPS - Free Report) plunged nearly 5.4% on Wednesday.
Airlines shares dipped as United Airlines Holdings, Inc. (UAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) slipped 2.4% and 1.9%. While share of Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) plunged 8.4% after the cruise liners extended suspension of its voyages through September.
Economic Data
On Jun 17, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported that housing starts in May increased at a slower-than-expected pace of 974,000. The revised figure for the last month rose to 934,000, but May’s figure is lower than the consensus estimate of 1,119,000.
Additionally, building permits in May grew at a rate of 1,220,000, which is 14.4% above the revised 1,066,000 permits in April. In a separate report from the U.S. Commerce Department and the Mortgage Bankers Association, building permits made a robust rebound and applications for loans to purchase homes surged last week to a near 11-1/2-year high last week.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>