Markets

Midday Update: Stocks Retreat Off Record Levels into Q2 Earnings

Stocks have retreated off last week's record highs as defensive posturing before the start of the Q2 earnings season has all three major indices in negative territory, threatening to snap a three-day winning streak for the Dow Industrials and S&P 500.

Energy stocks are weighed down by a continued decline in oil prices , but utilities have rebounded in reaction to a drop in Treasury yields as lower rates helps reduce utilities' operating costs. Technology stocks are lagging the remaining sectors with weakness noted in social media and networking stocks.

European equities closed with heavy losses in sympathy with U.S. markets as well as a greater-than-expected drop in German factory orders. A string of bearish data from Germany, long considered the engine of European growth, has raised concerns about the European economy and increased the probability for the European Central Bank to assume a more accommodative monetary policy.

Crude oil was down $0.74 to $103.31 per barrel. Natural gas was down $0.15 to $4.25 per 1 million BTU. Gold was down $5.40 $1,315.90 an ounce, while silver was down $0.17 to $20.97 an ounce. Copper was down $0.03 to $3.26 per pound.

Among energy ETFs, the United States Oil Fund was down 0.37% to $38.11 with the United States Natural Gas Fund was down 2.78% to $23.43. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.86% to 26.11 while SPDR Gold Shares were down 0.50% to $126.53. The iShares Silver Trust was down 1.01% to $20.08.

Here's where the markets stand at mid-day:

NYSE Composite Index down 68.96 (-0.62%) to 11,035.76

Dow Jones Industrial Average down 54.87 (-0.32%) to 17,013.39

S&P 500 down 8.42 (-0.42%) to 1,977.02

Nasdaq Composite Index down 29.64 (-0.66%) to 4,456.29

GLOBAL SENTIMENT

Nikkei 225 Index down 0.37%

Hang Seng Index down 0.02%

Shanghai China Composite Index up 0.03%

FTSE 100 Index down 0.62%

CAC 40 down 1.41%

DAX down 1.03%

NYSE SECTOR INDICES

NYSE Energy Sector Index down 0.30%

NYSE Financial Sector Index down 0.77%

NYSE Healthcare Sector Index down 0.69%

UPSIDE MOVERS

(+) ORBK (+4.70%), Buys SPTS Technologies in $370 million cash deal.

(+) PENX (+7.87%), Reported higher fiscal Q3 earnings topping analyst estimate.

(+) EVRY (+25.00%), Workers accept labor deal revisions; cuts operating costs.

(+) PAL (+8.22%), Cuts senior secured term loan interest rate.

DOWNSIDE MOVERS

(-) NEWL (-24.12%), Files claims against Global IV seeking damages in excess of $125 mln.

(-) COCO (-20.70%), Set to close 12 campuses, sell 85 others.

(-) GTAT (-13.04%), CEO sells $1.1 million shares on July 1.

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

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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 Nasdaq, Inc.

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