Stock Market News for June 26, 2017

Energy shares bounced back on Friday, sending S&P 500 and the Nasdaq higher. Additionally, gain in shares of tech stalwarts such as Apple, Facebook and Microsoft boosted the broader markets. Meanwhile, the Dow finished marginally lower dragged down primarily by financials. Separately, investors digested the new-home sales data released by U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) declined 2.53 points to close at 21,394.76. The S&P 500 advanced 0.2% to close at 2,438.30. The tech-heavy Nasdaq Composite Index advanced 0.5% to finish at 6,265.25. The Dow, the S&P 500 and Nasdaq have advanced 8.3%, 8.9% and 16.4% respectively on a year to date basis. The fear-gauge CBOE Volatility Index (VIX) traded near 10 on Friday. Advancers outnumbered declining stocks on the NYSE by a 1.96 to 1 ratio.  

Energy Shares Recover

Oil prices recouped on Friday to settle at $43.01 a barrel, an increase of $0.27, or 0.6%. Oil prices posted its only gain of the week, recovering from its lowest level since August last year. As per John Kilduff, founding partner of Again Capital, the IHS Markit U.S. Output Composite index declined to post a three-month low, sending crude prices higher on Friday.

The increase in oil prices had a positive impact on the energy shares, which in turn had a positive impact on the broader markets. The broader Energy Select Sector SPDR XLE advanced 0.7%, emerging as the best performing sector of S&P 500. Some of its key holdings, including Exxon Mobil Corp XOM and Chevron Corp CVX increased 0.7% and 0.5% respectively.

Technology Shares Boost Nasdaq

Shares of large cap companies including Apple AAPL, Facebook FB and Microsoft MSFT advanced on Friday pushing the Nasdaq higher. Both Facebook and Microsoft recorded a gain of more than one percent, while Apple's shares finished 0.5% higher. Investors appeared to have recovered their faith in tech shares following the tech selloff in past two weeks.

The broader Technology Select Sector SPDR XLK advanced 0.6%, emerging as one of the best performing sector of S&P 500. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Financials and Healthcare Decline

Financials continued to decline on Friday as rightly pointed out by CIO of Bryn Mawr Trust, Ernie Cecilia. Ernie said that "Financials have been under pressure lately because of the yield curve flattening."

Additionally, investors digested comment from St. Louis Fed President James Bullard on Friday.  Bullard commented that the central bank should refrain from raising interest rates as the economy seems to be trapped in a "low growth, low-inflation and low-interest-rate regime."

The broader Financials Select Sector SPDR XLF declined 0.4%, which had an adverse impact on the broader markets. Some of its key holdings, including US Bancorp USB and Goldman Sachs Group Inc GS fell 1% and 1.2% respectively.

Meanwhile, healthcare shares were also down on Friday. Healthcare shares declined after posting strong gain on Thursday following the release of the Senate health care Bill. The broader Health Care Select Sector SPDR XLV declined 0.2%.

Economic Data

As per the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new-home sales in May were recorded at a seasonally adjusted annual rate of 610,000 against the consensus estimate of 596,000. The figure increased 2.9% from the revised April rate of 593,000.

Weekly Roundup

For the week, the Dow, S&P 500, the Nasdaq registered a gain of 0.1% and 0.2% and 1.8% respectively. Healthcare shares posted gain following the release of Senate's Healthcare Bill, aimed to repeal key sections of Obama's Affordable Care Act. Trump's tax plan spurring waves of buyouts, innovation reaching exponential levels and drug price outrage easing out.  (Read More)

Meanwhile, Existing-home sales increased by 1.1% to a seasonally adjusted annual rate of 5.62 million in May from a revised figure of 5.56 million in the previous month. Separately, President Emmanuel Macron secured a comfortable victory in the final round of voting in parliamentary elections.

Stocks that made Headlines

CBS Shows to Feature in fuboTV's Live Streaming TV Service

CBS Corporation CBS has reached an agreement with the leading sports streaming service provider fuboTV that will enable it to live-stream the U.S.'s most-watched broadcast network, CBS sports and entertainment channels. (Read More)

Diageo Strengthens Tequila Category with Casamigos Buyout

Diageo plc DEO is set to acquire the U.S. fastest-growing premium tequila brand, Casamigos, in a deal worth $1 billion. (Read More)

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