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S&P 500 lowers to slightly lower when closing, while the fourth end is outlined

S&P 500 lowers to slightly lower when closing, while the fourth end is outlined
Written by boustamohamed31

  • The US economy contracted in the first quarter; consumer spending has been revised lower
  • General Mills is growing as sales beat at higher prices
  • Bed Bath & Beyond replaces CEO, shares fall
  • Dow up 0.27%, S&P down 0.07%, Nasdaq down 0.03%

NEW YORK, June 29 (Reuters) – The S&P 500 ended its swing session slightly lower on Wednesday as investors staggered to the bottom line of the bad month, the gloomy quarter and the worst first half of the Wall Street benchmark since President Richard I’s term. of Nixon.

The three major US stock indexes spent much of the session fluctuating between red and green. The Nasdaq joined the S&P 500, closing lower in nominal terms, while the Dow with blue chips made a modest profit.

“The market is struggling to find direction,” said Megan Horneman, chief investment officer at Verdence Capital Advisors in Hunt Valley, Maryland. “We had disappointing data and the markets are waiting for the profit season, when we will get more clarity” about future profits and the economic slowdown.

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Apple market leaders (AAPL.O)Microsoft (MSFT.O) and Amazon.com (AMZN.O) provided up muscle while economically sensitive chips (.SOX) lowercase letters (.RUT) and transports (.DJT) were weaker in the wider market.

With the end of the month and the second quarter of the day, the S&P 500 set a course for its largest percentage decline in the first half of 1970.

The Nasdaq was on track for its worst performance in the first half as the Dow looked on track for its biggest drop in January-June rates since the financial crisis.

All three indices had to report their second consecutive quarter of decline. The last time this happened was in 2015.

“We have a central bank that had to move from a decade-long easy money policy to a tightening cycle,” Horneman added. “It’s new to a lot of investors.”

“We see a reassessment of what we expect to be a very different interest rate environment in the future.”

The Dow Jones Industrial Average (.DJI) rose 82.32 points, or 0.27%, to 31,029.31, the S&P 500 (.SPX) lost 2.72 points, or 0.07%, to 3818.83 and the Nasdaq Composite (.IXIC) fell 3.65 points, or 0.03%, to 11,177.89.

Of the S&P 500’s 11 major sectors, five lost positions during the day, with energy reserves (.SPNY) suffered the largest percentage decline. Healthcare (.SPXHC) led the winners.

The yield on reference government securities has risen by more than 1,606 percentage points so far in 2022, their biggest jump in the first half of 1984. This explains why interest rate-sensitive rising stocks (.IGX) have decreased by over 26% since the beginning of the year.

Screen shows information about trading in shares on the floor of the New York Stock Exchange (NYSE) in New York, USA, June 27, 2022. REUTERS / Brendan McDermid

Federal Reserve officials have reaffirmed their determination to curb inflation in recent days, setting expectations for their second consecutive 75-point rate hike in July, while expressing confidence that the tightening of funds will not drive the economy into recession. Read more

In economic news, data from the US Department of Commerce shows that GDP has shrunk slightly more than previously stated in the first three months of the year. Consumer spending, which accounts for about 70% of the economy, contributed significantly less than initially reported. Read more

A day earlier, a terrible report on consumer confidence showed that consumer expectations were sinking to their lowest level since March 2013.

The reporting season for the second quarter remains a few weeks later and 130 of the companies in the S&P 500 have announced in advance. Of these, 45 are positive and 77 are negative, leading to a negative / positive ratio of 1.7 stronger than the first quarter, but weaker than a year ago, according to Refinitiv.

What will investors hear in these profit calls?

“The pressure on margins is the big worries, the price pressures, the reduction in capital spending plans due to the slowdown and if they see any improvement in the supply chain,” Horneman said.

Packaged food company General Mills Inc (GIS.N) jumped 6.3% after its sales exceeded forecasts. Read more

Bed Bath & Beyond Inc. (BBBY.O) fell 23.6% after the retailer announced that it had replaced CEO Mark Triton, hoping to reverse the decline. Read more

Fedex Corp. Package Supplier (FDX.N) fell 2.6% as a result of its disappointing margin forecast for its ground unit. Read more

Emission reductions outnumber advanced NYSEs by 1.96 to 1; of the Nasdaq, a ratio of 1.79 to 1 favors declines.

The S&P 500 publishes 1 new 52-week highs and 36 new lows; The Nasdaq Composite recorded 14 new highs and 284 new lows.

The volume of stock exchanges in the United States is 11.55 billion shares, compared to an average of 12.79 billion for the last 20 trading days.

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Report by Stephen Culp; additional reports by Amruta Khandekar and Shreyashi Sanyal in Bangalore; Edited by David Gregorio

Our standards: The principles of the Thomson Reuters Trust.

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