U.S. Market Indexes Lower as Stock Valuations Cool Off
U.S. market indexes were lower Thursday as stock index gains eased. For the day the Dow Jones Industrial Average closed at 18517.23 for a loss of -77.80 points or -0.42 percent. The S&P 500 was also down, closing at 2165.17 for a loss of -7.85 points or -0.36 percent. The Nasdaq Composite closed lower at 5073.90 for a loss of -16.03 points or -0.31 percent. The VIX Volatility Index was higher for the day at 12.80 with a gain of 1.03 points or 8.75 percent.
Thursday’s Market Movers
Stocks resisted further gains on Thursday despite continued signs of strengthening in the economy and corporate earnings. Most investors called the slowdown only a pause in the market’s momentum.
On Thursday, the Conference Board’s Leading Indicators report showed the Leading Indicators Index gaining 0.3 percent for the month. The other leading economic report for the day included jobless claims which were down 1,000 from the previous week. The level for claims is now at 253,000 after the week’s decrease of 1,000.
Also for the day, the European Central Bank reported it would leave interest rates unchanged at 0.50 percent. Further stimulus is likely from the ECB in September.
Stocks trading actively for the day included Chesapeake Energy, Intel, Bank of America, Ford, eBay, General Motors, General Electric, Southwest Airlines, Kinder Morgan and Qualcomm.
In the Dow Jones Industrial Average, the following stocks led losses for the day:
Losses (percent)
Intel Corp -4.03
American Express Co -1.64
Nike Inc B -1.32
Goldman Sachs Group Inc -1.06
The Home Depot Inc -0.98
Sectors leading losses in the broad market included industrial, energy, materials and technology. In technology, the following stocks led losses:
Losses (percent)
Intel Corp -4.03
Tractor Supply Co -3.64
Tesla Motors Inc -3.43
Micron Technology Inc -3.02
JD.com Inc ADR -2.96
In commodities, gold traded higher as evidenced by the SPDR Gold Trust which reported a gain of 1.94 points or 1.55 percent. The dollar was lower for the day. The U.S. Dollar Index was down -0.21 points or -0.22 percent at 96.93. The dollar weakened against the euro with an exchange rate of 1.1024. The dollar also weakened against the pound with an exchange rate of 1.3221.
Small-Cap Stocks
In small-caps, the Russell 2000 was lower at 1203.84 for a loss of -5.90 points or -0.49 percent. The S&P 600 Small-Cap Index was lower at 736.99 for a loss of -4.34 points or -0.59 percent. The Dow Jones Small-Cap Growth TSM Index was lower at 7334.68 for a loss of -42.61 points or -0.58 percent. The Dow Jones Small-Cap Value TSM Index was lower at 8655.41 for a loss of -29.00 points or -0.33 percent.
Other Notable Indexes
Other notable index closes included the Dow Jones Total Stock Market Index closing at 22335.04 for a loss of -81.43 points or -0.36 percent; the S&P 400 Mid-Cap Index closing at 1542.06 for a loss of -7.45 points or -0.48 percent; the S&P 100 Index closing at 959.07 for a loss of -3.37 points or -0.35 percent; the Russell 3000 closing at 1277.26 for a loss of -4.71 points or -0.37 percent; the Russell 1000 closing at 1198.61 for a loss of -4.31 points or -0.36 percent; and the Dow Jones U.S. Select Dividend Index closing at 622.02 for a loss of -1.34 points or -0.21 percent.
