The Dow Jones and Nasdaq composite remained in the negative late Thursday. But both indexes trimmed losses and traded off intraday lows, but ultimately closed lower.
Nasdaq Lags, Small Caps Lead
At the close, the Dow Jones Industrial Average was down 0.8% as the S&P 500 held a loss of 0.9%. The Nasdaq was down 1.3%, with tech stocks remaining under pressure. Small caps fared the best, with the Russell 2000 down 0.6% after leading the downside on Wednesday. Volume was lower on the Nasdaq and higher on the NYSE vs. the close on Wednesday, according to early data.
As the final trading day of June comes to a close, the indexes 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 lower by 6.6%. Year-to-date losses are much steeper. For the S&P 500, the index is down 20.6% through Thursday's close and had its worst first half since 1970. The Nasdaq is down 29.4% and Russell 2000 has lost 23.9%. Both indexes posted their worst first half of any year on record, according to Dow Jones Market Data.
Thursday was also the first time the 10-year yield fell below 3% in nearly a month. The 10-year yield declined to 2.97% in afternoon trading.
Meanwhile, Bitcoin is also on track for hefty losses. The cryptocurrency lost around 58% of its value in Q2. This was its worst quarterly loss in more than a decade. According to CoinDesk, Bitcoin has fallen from $45,524 at the start of the quarter to around $18,000 on Thursday, the final day of the second quarter.
Coinbase lost 5.4% while Riot Blockchain declined 6.8%.
Early Thursday, the personal consumption expenditure price index came out, showing a 0.6% gain for the month of May. This index, which is also the Federal Reserve's preferred measure of inflation, showed a year-over-year increase of 6.3%. Both numbers were slightly lower than expected, according to Econoday estimates. Personal income rose 0.5% in May, in line with estimates.
Among S&P 500 sectors, the energy sector led the downside for the second day in a row. The price of U.S. crude oil traded lower on Thursday as well, down over 3.6% to just under $106 a barrel. On the upside, the defensive utilities sector outperformed.
Stocks In The IBD 50
Solar energy stocks led the upside in the growth-focused IBD 50 index. Both Enphase Energy and Daqo New Energy outperformed with gains of 5.7% and 6.3%, respectively.
Enphase Energy reclaimed its 21-day moving average in above-average volume as the stock moved closer to a 217.33 handle buy point. The stock is also approaching a downward-sloping trendline entry. Daqo remains extended past the 20% profit zone from a 53.70 buy point. It's also well above the 50-day and 21-day exponential moving averages.
On the downside, shares of Simply Good Foods fell nearly 9% in afternoon trading. Earnings were released early Thursday and provided the fuel behind the selling. Even though the report beat analysts' expectations on both the top and bottom line, guidance was disappointing.
Another decliner in the IBD 50, HealthEquity, lost 3.3% and slipped below its 50-day line as it attempts to form a handle. The first-stage cup-with-handle base shows a buy point of 71.04. Investors should watch to see if HealthEquity can find support at the 50-day moving average and move higher.
Dow Jones Stocks On The Move: Apple, Walgreens Fall
Research firm Gartner on Thursday said it expects worldwide mobile phone unit shipments to decline 7.1% in 2022 from last year. But iPhone maker Apple has "avoided any major build reductions," according to Loop Capital Markets analysts. Meanwhile, South Korea-based Samsung cut its smartphone build orders by at least 25 million units for 2022. Apple shares were down around 1.8%.
But Apple was far from the worst performing stock in the Dow Jones today. Walgreens led the downside with a loss of 7.3% after reporting earnings. The drugstore chain beat Wall Street's views for its third-quarter EPS as online sales jumped in the U.S. But its quarterly sales fell after being hit by declining Covid-19 vaccination demand.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
