S&P 500 drops barely to shut barely decrease as costs fall on the finish of the quarter

NEW YORK, June 29 (Reuters) – The S&P 500 ended a volatile session slightly lower on Wednesday as investors staggered toward the end of a bear month, a dismal quarter and a bad first half of the year. worst performance for Wall Street’s benchmark index since President Richard. Nixon’s first term.

The three major US stock indexes spent most of the session between the red and the green. Nasdaq joined the S&P 500, closing nominally lower, while the blue-chip Dow posted modest gains.

“The market is struggling to find direction,” said Megan Horneman, chief investment officer at Verdence Capital Advisors in Hunt Valley, Maryland. “We’ve had disappointing data and the market is waiting for earnings season, when we’ll be clearer” on future earnings and the recession.

Apple leads the market (AAPL.O)Microsoft (MSFT.O) and Amazon.com (AMZN.O) provide a bullish base, while the chip is economically sensitive (.NUMBER X) little hat (.RUT) And shipping (.DJT) underperforming in the broader market.

With just one day to go until the end of the month and second quarter, the S&P 500 has set a path for its steepest first half percentage decline since 1970.

Nasdaq is on track for its worst first half performance ever, while Dow appears on track for its biggest January-June percentage drop since the crisis finance.

All three indexes are bound to post their second consecutive quarterly decline. The last time that happened was in 2015.

“We have a central bank that has had to pivot from decades of easy monetary policy to a tightening cycle,” Horneman added. “This is new to many investors.”

“We are seeing a revaluation for what we expect to be a very different interest rate environment going forward.”

Dow Jones Industrial Average (.DJI) up 82.32 points, or 0.27%, to 31,029.31, S&P 500 (.SPX) lost 2.72 points, or 0.07%, to 3,818.83 and Nasdaq Composite (.IXIC) fell 3.65 points, or 0.03%, to 11,177.89.

Of the 11 major S&P 500 sectors, 5 lost points on the day, with energy stocks (.SPNY) the largest percentage reduction. Health care (.SPXHC) leading gainers.

Benchmark Treasury yields are up more than 1,606 percentage points so far in 2022, their strongest first half gain since 1984. That explains why growth stocks are sensitive to interest rates. (.IGX) has dropped more than 26% year-to-date.

Federal Reserve officials in recent days have reiterated their determination to contain inflation, set expectations for a second 75 basis point rate hike in July, and expressed confidence. believe that monetary tightening will not push the economy into recession. read more

In economic news, U.S. Commerce Department data shows GDP shrinking slightly more than previously reported in the first three months of the year. Consumer spending, which accounts for about 70% of the economy, contributes significantly less than initially reported. read more

A day earlier, a severe consumer confidence report showed consumer expectations fell to their lowest level since March 2013.

The second-quarter reporting season is still a few weeks away, and 130 companies in the S&P 500 have already announced. Of those, 45 are positive and 77 are negative, resulting in a stronger negative/positive ratio than the first quarter of 1.7 but weaker than a year ago, according to Refinitiv data.

What will investors listen to on those earnings calls?

“Progress on margins, which is a big concern, pressure on pricing, shrinking capital plans due to the downturn and whether they see any improvement in the supply chain,” said Horneman. respond or not”.

General Mills Inc . packaged foods company (GIS.N) rose 6.3% after sales beat estimates. read more

Bed Bath & Beyond Inc (BBBY.O) fell 23.6% following the retailer’s announcement that it had replaced chief executive Mark Tritton, hoping to reverse the decline. read more

FedEx Corp . package delivery company (FDX.N) fell 2.6% following disappointing profit margin forecasts for its ground unit. read more

The number of losers outnumbered advancers on the NYSE by a ratio of 1.96 to 1; on Nasdaq, the 1.79 to 1 ratio favors the bears.

The S&P 500 posted a 52-week high and 36 new lows; Nasdaq Composite recorded 14 new highs and 284 new lows.

Volume on US exchanges was 11.55 billion shares, compared with an average of 12.79 billion over the last 20 trading days.

Reporting by Stephen Culp; additional reporting by Amruta Khandekar and Shreyashi Sanyal in Bangalore; Editing by David Gregorio

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