The Dow Jones Industrial Average closed at 25,490.47 on Thursday with a loss of 286.14 points or -1.11%. The S&P 500 closed at 2,822.24 for a loss of 34.03 points or -1.19%. The Nasdaq Composite closed at 7,628.28 for a loss of 122.56 points or -1.58%. The VIX Volatility Index was higher at 16.92 for a gain of 2.17 points or 14.71%.
Thursday’s market movers
International risks were a key factor for investors Thursday as stocks closed with losses for a second day. Trade tensions with China combined with the potential for a new prime minister to replace Theresa May and Brexit efforts in the United Kingdom decreased risk appetite. Treasury prices gained for the day, while the U.S. Dollar Index was flat.
In the U.S., Best Buy (BBY, Financial) added to the week’s large-cap retailers reporting earnings. Best Buy reported earnings per share that beat estimates by 15 cents and revenue in line with estimates. On Capital Hill, the House passed changes to the retirement system, Nancy Pelosi said the House Democrats are not on a path to impeach Trump, the Trump Administration announced a $16 billion package for U.S. farmers and the Senate reached a $19.1 billion deal on disaster support.
Economic reports affecting market trading included the following:
- Jobless claims decreased to 211,000 from 212,000.
- The Markit Composite PMI decreased to 50.9 in May from 53.0. Separately, the Markit Manufacturing PMI decreased to 50.6 in May from 52.6 and the Markit Services PMI decreased to 50.9 in May from 53.0.
- New home sales decreased 6.9% in April to a seasonally adjusted annual rate of 0.673 million.
- The Treasury held auctions for four-week bills at a rate of 2.335%, eight-week bills at a rate of 2.330% and 10-year TIPS at a rate of 0.567%.
- Freddie Mac’s weekly mortgage market rate survey showed mortgage rates falling. The 30-year fixed-rate mortgage averaged 4.06%, decreasing from 4.07%. The 15-year fixed-rate mortgage averaged 3.51%, decreasing from 3.53%.
In the Dow Jones Industrial Average, the following stocks led losses:
- United Technologies (UTX, Financial) -3.66%
- Dow Inc. (DOW, Financial) -2.99%
- IBM (IBM, Financial) -2.90%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,501.38 for a loss of 30.25 points or -1.97%. The S&P 600 closed at 909.45 for a loss of 20.79 points or -2.23%. The Dow Jones Small-Cap Growth Total Stock Market Index closed at 9,557.55 for a loss of 191.42 points or -1.96%. The Dow Jones Small-Cap Value Total Stock Market Index closed at 9,296.01 for a loss of 135.19 points or -1.43%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,853.57 for a loss of 31.59 points or -1.68%; the S&P 100 at 1,249.31 for a loss of 14.84 points or -1.17%; the Russell 3000 at 1,659.90 for a loss of 21.65 points or -1.29%; the Russell 1000 at 1,562.27 for a loss of 19.55 points or -1.24%; the Wilshire 5000 at 28,964.56 for a loss of 379.52 points or -1.29%; and the Dow Jones U.S. Select Dividend Index at 690.41 for a loss of -5.70 points or -0.82%.
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