The three major US stock indexes spent much of the session oscillating between red and green. The Nasdaq joined the S&P 500, closing lower in nominal terms, while the blue-chip Dow rose moderately. “The market is struggling to find direction,” said Megan Hormann, Verdence Capital Advisors’ chief investment officer in Hunt Valley, Maryland. “We have had disappointing data and the markets are waiting for the profit period, when we will have more clarity” in relation to future profits and the economic slowdown. Sign up now for FREE unlimited access to Reuters.com Register With the end of the month and the second quarter every day away, the S&P 500 has set the course for the biggest drop in the first half since 1970. The Nasdaq was on track for its worst performance in the first half, while the Dow was well on its way to the biggest January-June drop since the financial crisis. All three indices were expected to record their second consecutive quarterly decline. The last time it happened was in 2015. “We have a central bank that needs to move from a decades-old easy money policy to a tighter cycle,” Hornman added. “This is new to many investors.” “We are seeing a revaluation 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 3,818.83 and the Nasdaq Composite scored 5, IX3 points (.IX3). 0.03%, to 11,177.89. Of the 11 major sectors of the S&P 500, five lost ground on the day, with energy stocks (.SPNY) experiencing the largest percentage drop. Healthcare (.SPXHC) led the winners. Bond yields have risen by more than 1,606 percentage points so far in 2022, their biggest jump in the first half since 1984. This explains why interest-sensitive growth stocks (.IGX) have plunged more than 26% year-on-year. until today. A screen displays trading information for stocks on the floor of the New York Stock Exchange (NYSE) in New York, USA, June 27, 2022. REUTERS / Brendan McDermid Federal Reserve officials in recent days have reiterated their determination to curb inflation, raising expectations for a second consecutive rate hike of 75 basis points in July, while expressing confidence that the monetary tightening will not lead the economy into recession. read more In economic news, US Commerce Department data showed that GDP shrank slightly more than previously reported in the first three months of the year. Consumer spending, which accounts for about 70% of the economy, contributed significantly less than originally reported. read more A day earlier, a tremendous consumer confidence report showed that consumer expectations are sinking to their lowest level since March 2013. The reference quarter for the second quarter is several weeks away and 130 of the S&P 500 companies have announced in advance. Of these, 45 were positive and 77 were negative, with the result that the negative / positive ratio was 1.7 stronger than in the first quarter but weaker than a year ago, according to Refinitiv. What will investors hear in these profit calls? “Marginal pressures, this is the big concern, price pressures, the reduction of capitalization plans due to the slowdown and if there is any improvement in the supply chain,” Horneman said. Packaging food company General Mills Inc (GIS.N) jumped 6.3% after its sales exceeded estimates. read more Bed Bath & Beyond Inc (BBBY.O) fell 23.6% after the retailer announced that it had replaced CEO Mark Tritton, hoping to reverse a recession. read more Package delivery company Fedex Corp (FDX.N) fell 2.6% in the wake of the disappointing profit margin forecast for its ground unit. read more The falling issues were more than those moving on the NYSE with a ratio of 1.96 to 1. On the Nasdaq, the ratio of 1.79 to 1 favored the declines. The S&P 500 hit 1 new 52-week high and 36 new lows. the Nasdaq Composite recorded 14 new highs and 284 new lows. The volume on the US stock exchanges was 11.55 billion shares, compared to the average of 12.79 billion in the last 20 trading days. Sign up now for FREE unlimited access to Reuters.com Register Report by Stephen Culp. additional reports by Amruta Khandekar and Shreyashi Sanyal in Bangalore. Edited by David Gregorio Our role models: The Thomson Reuters Trust Principles.
