Stocks fall; Dow breaks six-week win streak

Posted Aug. 09, 2013, at 6:09 p.m.

NEW YORK — U.S. stock indexes declined Friday, with the Dow Jones Industrial Average halting its longest weekly winning streak since August of last year.

“It’s difficult to attach a great deal of meaning to today’s action without volume, which is lackluster. We’ve tried to make the stories fit the market action, and that’s a dangerous game, especially in low volume,” said Art Hogan, market strategist at Lazard Capital Markets.

The Dow Jones Industrial Average halted a six-week winning stretch, its longest since one that ended Aug. 17, 2012. It declined as many as 152 points Friday, but ended with a loss of 72.81 points, or 0.5 percent, at 15,425.51, leaving it down 1.5 percent on the week.

After rising to a session high of 1,699.42, the S&P 500 index fell 6.06 points, or 0.4 percent, to 1,691.42, off 1.1 percent for the week, with telecommunications leading sector declines and materials faring the best.

The S&P 500 index last Friday closed at a record 1,709.67, a day after finishing above 1,700 for the first time. It’s up nearly 19 percent for the year.

The Nasdaq Composite shed 9.02 points, or 0.3 percent, to 3,660.11 and off 0.8 percent from the week-ago close.

Decliners ran slightly ahead of advancers on the New York Stock Exchange, where nearly 634 million shares traded.

Composite volume surpassed 2.9 billion.

Wholesale inventories fell 0.2 percent in June after declining 0.6 percent in May, the Commerce Department reported.

The dollar edged higher against other major currencies, while the yield on the 10-year Treasury note fell a basis point to 2.555 percent.

Crude prices gained $2.57, or 2.5 percent, to $105.97 a barrel, down 0.9 percent for the week, and gold rose $2.30 to end at $1,312.20 an ounce, up $1.70 from the prior week’s finish.

Of the 446 companies in the S&P 500 that have reported results for the second quarter of 2013, 67 percent have beaten earnings expectations, while 54 percent reported revenue above estimates, according to Thomson Reuters analyst Greg Harrison.

In the coming week, 13 S&P 500 companies are expected to report quarterly earnings, with Dow components Cisco Systems Inc. and Wal-Mart Stores Inc. among them.

Cisco was off 0.8 percent after a J.P. Morgan analyst upgraded his view of its shares to neutral from underweight ahead of the technology company’s release of its fiscal fourth-quarter earnings on Wednesday.

Discount retailer Wal-Mart is expected to report on Thursday.

Friday’s notable movers included shares of Gap Inc., down 3.1 percent, after a Susquehanna Financial Group analyst cut his rating to neutral from positive, a day after the clothing retailer reported July sales at stores open at least a year climbed less than Wall Street expected.

J.C. Penney Co. shares dropped 5.8 percent after the department-store chain’s chairman voiced support for its CEO. Bill Ackman’s Pershing Square Capital Management LP, the company’s biggest shareholder, wants J.C. Penney to find a new chief executive.

Monster Beverage Corp. rose 0.4 percent after the energy-drinks distributor reported quarterly sales.

Shares of BlackBerry Ltd. jumped 5.7 percent following a media report that the smartphone maker is open to going private.

NRG Energy Inc. slipped 2 percent after the company said second-quarter profit slumped 48 percent and lowered its guidance for 2013 adjusted earnings.

Priceline.com Inc. shares jumped 3.9 percent a day after the online-travel business reported a 24 percent rise in second-quarter earnings, with sales growth driven by its hotel and rental-car businesses.

U.S. stocks on Thursday ended in positive territory for the first day this week, buoyed by stronger-than-expected Chinese trade data.

Distributed by MCT Information Services

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