S&P, Dow Finish Week Slightly Lower As Nasdaq Falls Sharply

The major averages all declined on a weekly basis, though the loss for the Dow and S&P were fairly mild while the slide in the Nasdaq was more significant. Google (GOOGL) got called out by the EU, Amazon (AMZN) got called out by the President and biotech had a bad week, which all contributed to the Nasdaq’s struggles.

MACRO NEWS: In the U.S., durable goods orders fell 1.1% overall during May, versus the expected decline of 0.6%. If transportation items are removed from the data, the core reading showed orders were up 0.1%, versus the expected increase of 0.4%. The Chicago Fed national activity index had a reading of -0.26, versus the expected reading of 0.20. The Conference Board’s consumer confidence reading rose 1.3 points to 118.9 in June, which was better than the 116.0 reading that was expected. Weekly jobless claims data showed initial claims of 244,000, versus the expected 240,000. First quarter annualized GDP growth was upwardly revised to growth of 1.4%, versus the expectation for the growth estimate to remain at 1.2%. Personal consumption in Q1 is now estimated to have grown 1.1% , versus the prior estimate of an increase of 0.6%. Personal income rose 0.4% in May, while spending increased 0.1%. The Chicago Business Barometer, also known as the Chicago PMI, surged 6.3 points to 65.7 in June, which was much better than expected. The University of Michigan’s final consumer sentiment reading for June was revised up to 95.1 from the 94.5 flash reading, though that is still down from 97.1 in May. Baker Hughes reported that the U.S. rig count is down 1 rig from last week to 940, with oil rigs down 2 to 756 and gas rigs up 1 to 184… In U.S. political news, Senate Republicans delayed the vote on their new healthcare bill until after the July 4th recess as they continue to negotiate disagreements regarding the plan to repeal and replace Obamacare.

In Asia, China’s NBS manufacturing PMI for June came in at 51.7, versus the consensus forecast for a reading of 51, while the NBS non-manufacturing PMI ticked up 0.4 points to 54.9.