Stock market sells off as economic data comes in; These major stocks down sharply

The Dow Jones Industrial Average fell more than 2% as the stock market suffered another sell-off on inflation and economic data. The S&P 500 is having its worst first six months of the year since 1970, and it’s the worst six months of any other index.


The Dow Jones led the market lower with a 2.7% drop. Honeywell International (HON) fell to a November 2020 low. American Express (AXP) is at its lowest since February 2021, with stocks falling more than 3% amid a bad day for financials. Financial Sector Select SPDR (XLF) fell 2.4%.

Boeing (BA) lost 4.6% and caterpillar (CAT) lost 3.4%.

The Nasdaq composite lost 2.2% and the S&P 500 1.8%. The small-cap Russell 2000 also fell 2.2%.

Volume fell on the Nasdaq and rose on the NYSE from the same time on Wednesday.

Important actions such as Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), (AMZN) and Nvidia (NVDA) fell from 2% to 4.8%. All are trading below their 21-day exponential moving averages after attempting to break above these lines over the past few days.

The S&P 500 is on track for the worst June since 2008, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. As of Wednesday’s close, the S&P was down 7.6%, the worst June since an 8.6% decline in June 2008. The Nasdaq and Russell 2000 are on course for the worst first half of any year ever recorded, according to Dow Jones Market Data. The S&P 500, down 21% year-to-date, is having its worst first half since 1970, when it also fell 21%.

IBD 50 Innovator (FFTY) fell 1.3%.

Overview of the US stock market today

Index Symbol Price loss of profit % To change
Dow Jones (0DJIA) 30484.98 -544.33 -1.75
S&P500 (0S&P5) 3742.71 -76.12 -1.99
Nasdaq (0NDQC ) 10855.46 -322.43 -2.88
Russell 2000 (IWM) 166.81 -3.88 -2.27
INN 50 (FFTY) 26.59 -0.31 -1.15
Last Updated: 10:14 a.m. ET on 06/30/2022

IBD Stock 50 Astra Zeneca (AZN) fell nearly 3% after trying to climb above the 67.50 buy point of a double-bottom base. GSK (GSK), another pharmaceutical, fell 1.7% after encountering resistance at the 50-day moving average.

Cybersecurity firm Qualys (QLYS) slipped below its nearly joined 50- and 200-day moving averages. Despite general weakness, there were no sell signals in the IBD 50.

Economic data not helping the stock market

Stock market futures were lower ahead of the latest economic reports, and the new data didn’t help much.

WE consumer spending slowed to 0.2% in May against a revised 0.6% the previous month. The Bureau of Economic Analysis also reported that personal income rose 0.5%, in line with forecasts and unchanged from April.

“It really comes as no surprise that American consumers are cutting back on spending due to the high costs of, well, almost everything,” wrote Jennifer Lee, economist at BMO Capital Markets, in an analysis. The previous four months of spending data have been revised down, she noted.

The personal consumption expenditure index, a large gauge of inflation in the economy, increased by 6.3% in May on an annual basis. It was unchanged from last month’s reading. The index is the Fed’s preferred measuring stick for inflation. The core PCE rose from 4.9% to 4.7% and remained unchanged at 0.3%. Both figures were consistent with opinion.

The 12-month base PCE was the smallest increase in six months, Lee added. “In other words, nothing here that would scream anything bigger than 75,” referring to an expected 75 basis point rate hike at the Fed’s next meeting.

Futures: the tech giant gives “good” news? Tesla’s rivals are due

Drop in unemployment insurance claims; Treasury yields fall

Unemployment insurance claims fell from a revised figure of 233,000 to 231,000 in the past week. Economists had forecast 226,000, according to Econoday.

The yield on the 10-year Treasury fell 6 basis points to 3.03%.

On the commodities side, the price of US crude oil fell nearly 1% to $108.96 a barrel.

United Airlines (LAU) fell more than 4% in intense trading, dropping near 52-week lows. The airlines have reached a tentative agreement on pay increases for its pilots as United and other carriers grapple with staff shortages. Evercore have reduced their price target on United to 45 from 56.


The stock market forecast for the next six months carries big risks – but so does hope

Get Free IBD Newsletters: Market Readiness | Technical report | How to invest

What is CAN SLIM? If you want to find winning stocks, you better know

IBD Live: learn and analyze growth stocks with the pros

MarketSmith’s tools can help the individual investor

Previous HK50(HSI) Continues Uptrend Amid Positive Chinese Economic Data
Next Amid bad economic news at home, it's tempting for a leader to head abroad