Stock Market News for July 08, 2014 - Market News

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Benchmarks settled in the red on Monday as investors refrained from placing big bets ahead of the second-quarter earnings season. The blue-chip index and the S&P 500 snapped their three-day record rally on Monday. The Nasdaq ended in the red zone, dragged down by declines in bio-tech and Internet stocks.

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The Dow Jones Industrial Average (DJI) declined almost 0.3% to close Monday's trading session at 17,024.21. The Standard & Poor 500 (S&P 500) dropped 0.4% to finish at 1,977.65. The tech-laden Nasdaq Composite Index closed at 4,451.53; declining 0.8%. The fear-gauge CBOE Volatility Index (VIX) surged 9.8% to settle at 11.33. Total volume for the day was roughly 4.81 billion shares, lower than last month's average of 5.80 billion. Decliners outpaced advancing stocks on the NYSE. For 67% stocks that declined, 30% advanced.

The S&P 500 and the blue-chip index retreated from Thursday's record close after investors refrained from betting ahead of the start of the second-quarter earnings season. The Dow had closed above the 17,000 mark for the first time on Thursday. This helped the blue-chip index end at a record level for the fourteenth time this year. The S&P 500 also ended at another high on Thursday; the twenty-fifth one for the year.

Earnings season is expected to kick off this week. On Tuesday, aluminum producer Alcoa Inc. (NYSE: AA ) will declare quarterly earnings results. Among other major releases, Wells Fargo & Company (NYSE: WFC ) is expected to release earnings numbers on Friday. The following week, heavy-weights such as JPMorgan Chase & Co. (NYSE: JPM ), The Goldman Sachs Group, Inc. (NYSE: GS ), Intel Corporation (NASDAQ: INTC ) and Google Inc. (NASDAQ: GOOG ) are expected to post quarterly earnings results. According to FactSet Research Systems Inc. (NYSE: FDS ), earnings for the S&P 500 are expected to rise 4.9% this quarter.

The Nasdaq ended in negative territory largely due to Internet stocks. Shares of Internet television network provider Netflix, Inc. (NASDAQ: NFLX ), online travel company TripAdvisor Inc. (NASDAQ: TRIP ) and Internet radio service provider Pandora Media, Inc. (NYSE: P ) decreased 2.5%, 1.6% and 5.8%, respectively.

Internet stocks from the Technology sector such as Google Inc. (NASDAQ: GOOG ), Groupon, Inc. (NASDAQ: GRPN ), Yelp, Inc. (NYSE: YELP ), LinkedIn Corporation (NYSE: LNKD ), Yahoo! Inc. (NASDAQ: YHOO ), FireEye, Inc. (NASDAQ: FEYE ) and Facebook, Inc. (NASDAQ: FB ) declined 0.4%, 3.3%, 3.9%, 2.6%, 1.7%, 6.0% and 1.5%, respectively.

Bio-tech stocks too dragged the Nasdaq down. Shares of bio-tech companies such as Gilead Sciences Inc. (NASDAQ: GILD ), Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX ) Amgen Inc. (NASDAQ: AMGN ), Biogen Idec Inc. (NASDAQ: BIIB ) and Celgene Corporation (NASDAQ: CELG ) decreased 0.8%, 1.9%, 2.2%, 1.7% and 1.5%, respectively.

Airline stocks incurred losses on Monday. Shares of U.S. airline companies such as Delta Air Lines Inc. (NYSE: DAL ), United Continental Holdings, Inc. (NYSE: UAL ) and American Airlines Group Inc. (NASDAQ: AAL ) declined 4.4%, 3.2%, and 3.7%, respectively. The decline in shares of airline stocks had a negative impact on the industrial sector. The Industrial Select Sector SPDR (XLI) declined 0.7%.

Small-cap stocks also posted losses on Monday. The Russell 2000 Index of small-cap stocks underperformed other benchmarks. The index declined 1.8%, its biggest drop since April 25.

Seven out of 10 sectors of the S&P 500 ended in the red. The SPDR S&P Homebuilders (XHB) declined 1.6%, the highest among the S&P 500 sectors. Key housing stocks from the sector such as DR Horton Inc. (NYSE: DHI ), Toll Brothers Inc. (NYSE: TOL ), PulteGroup, Inc. (NYSE: PHM ), Lennar Corp. (NYSE: LEN ) and KB Home (NYSE: KBH ) decreased 1.9%, 2.1%, 1.6%, 2.0% and 2.6%, respectively.

The Materials Select Sector SPDR (XLB) declined 0.8%, the second biggest among the S&P 500 sectors. Key stocks from the Materials sector such as E. I. du Pont de Nemours and Company (NYSE: DD ), The Dow Chemical Company (NYSE: DOW ), Monsanto Company (NYSE: MON ), LyondellBasell Industries NV (NYSE: LYB ) and Praxair Inc. (NYSE: PX ) dropped 0.2%, 1.6%, 1.0%, 1.3% and 0.2%, respectively.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , US Markets

Referenced Stocks: XLI , XHB , XLB , AA , WFC

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