US close: Health and big-tech send S&P 500 to second weekly drop
Losses in health and large-cap tech stocks weighed on Wall Street at the end of the week, amid higher-than-usual trading volumes following the quarterly expiry of futures and options tied to equity indices and individual stocks.
The Dow Jones Industrials lost 0.33% or 57.94 points to end the session at 17,675.16, alongside losses of 0.33% for the S&P 500 and of 0.92% in the tech-laden Nasdaq.
That saw the S&P 500 register its second consecutive retreat, with a weekly loss of 1.2%.
To take note of, the VIX volatility index rose 0.2% on Friday, rising to 19.41, for a roughly 37% advance - its largest since August.
In Europe, the main indices were all over 1% higher as both sides of the referendum debate suspended campaigning until Saturday at the earliest following the murder of a British MP on Thursday.
Labour MP Jo Cox was shot and stabbed in her constituency town of Birstall near Leeds, allegedly by local resident Tommy Mair, who is reported to have shouted “Britain First” as he attacked her. There was a sense among market participants on Friday that the incident could sway public opinion back towards a Remain vote.
“One of the triggers for the change in market sentiment appears to be the suspension of Brexit campaigns following tragic killing of MP Jo Cox. The suspension of campaigns just means Brexit can temporarily move to the sidelines,” said Lawler.
“The killer is reported to have said ‘Britain First’ before shooting the MP, who was a strong believer in Britain remaining in the European Union. If true, it could tarnish the image of pro-Brexit supporters.”
On the economic data front, US housing starts fell a little less than expected in May, according to the Commerce Department. Housing starts slipped 0.3% month-on-month to a seasonally-adjusted annual rate of 1.16m versus expectations of a decline to 1.15m.
Meanwhile, oil prices recovered, with West Texas Intermediate up $1.99 a barrel to $47.98 despite the latest weekly data from Baker Hughes revealing a third back-to-back rise in the US oil rig count, which was up by nine to 337.
In corporate news, Apple shares declined following reports that Beijing’s Intellectual Property Office ruled that the iPhone 6 and 6S models are similar to Shenzhen Baili's 100C phone. This could lead to iPhone sales being halted in Beijing.
Microsoft nudged lower following news it was partnering with a cannabis industry software company.
Losses in Merck were attributed to negative broker comments on the outlook for sales of its Hepatitis treatment.
Poor analysts' comments also weighed on Alphabet.
Softwar-maker Oracle rose after reporting a smaller than expected drop in fiscal fourth quarter sales from $10.7bn to $10.59bn (consensus: $10.47bn).
Cosmetics giant Revlon gained after saying late on Thursday that it had agreed to buy Elizabeth Arden for $14 per share in cash, representing an enterprise value of around $870m.
S&P 500 - Risers
Transocean Ltd. (RIG) $11.31 +7.51%
Chesapeake Energy Corp. (CHK) $4.51 +6.37%
Murphy Oil Corp. (MUR) $29.34 +4.86%
Gap Inc. (GPS) $20.13 +4.08%
National Oilwell Varco Inc. (NOV) $35.18 +3.93%
Marathon Oil Corp. (MRO) $13.16 +3.87%
Diamond Offshore Drilling Inc. (DO) $24.75 +3.82%
Kohls Corp. (KSS) $36.35 +3.71%
FMC Technologies Inc. (FTI) $27.05 +3.60%
Signet Jewelers Ltd (SIG) $84.90 +3.51%
S&P 500 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $86.73 -4.07%
Regeneron Pharmaceuticals Inc. (REGN) $354.21 -3.36%
Linear Technology Corp. (LLTC) $46.15 -3.25%
Endo International Plc (ENDP) $16.44 -2.84%
Merck & Co. Inc. (MRK) $55.89 -2.80%
Alphabet Inc. Class A (GOOGL) $704.25 -2.76%
Alphabet Inc. Class C (GOOG) $691.72 -2.62%
Activision Blizzard Inc. (ATVI) $38.08 -2.43%
Apple Inc. (AAPL) $95.33 -2.28%
FLIR Systems Inc. (FLIR) $30.56 -2.21%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $75.93 +1.25%
Walt Disney Co. (DIS) $99.00 +0.63%
International Business Machines Corp. (IBM) $151.99 +0.62%
E.I. du Pont de Nemours and Co. (DD) $67.33 +0.61%
Verizon Communications Inc. (VZ) $53.78 +0.60%
Chevron Corp. (CVX) $101.57 +0.49%
Nike Inc. (NKE) $53.71 +0.45%
Boeing Co. (BA) $129.82 +0.35%
Cisco Systems Inc. (CSCO) $28.95 +0.28%
Intel Corp. (INTC) $31.76 +0.22%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $55.89 -2.80%
Apple Inc. (AAPL) $95.33 -2.28%
Visa Inc. (V) $76.99 -1.74%
Pfizer Inc. (PFE) $34.22 -1.53%
Coca-Cola Co. (KO) $44.79 -1.15%
Johnson & Johnson (JNJ) $115.48 -0.99%
Travelers Company Inc. (TRV) $111.86 -0.79%
Unitedhealth Group Inc. (UNH) $137.69 -0.70%
Goldman Sachs Group Inc. (GS) $145.64 -0.68%
3M Co. (MMM) $168.94 -0.58%
Nasdaq 100 - Risers
Biomarin Pharmaceutical Inc. (BMRN) $83.86 +3.79%
Bed Bath & Beyond Inc. (BBBY) $43.85 +3.30%
Seagate Technology Plc (STX) $23.22 +2.34%
Micron Technology Inc. (MU) $12.20 +2.09%
NetApp Inc. (NTAP) $24.86 +1.59%
Vodafone Group Plc ADS (VOD) $30.91 +1.41%
Symantec Corp. (SYMC) $19.97 +0.96%
American Airlines Group (AAL) $29.34 +0.69%
Illumina Inc. (ILMN) $137.05 +0.52%
Fastenal Co. (FAST) $44.47 +0.38%
Nasdaq 100 - Fallers
Ctrip.Com International Ltd. Ads (CTRP) $38.06 -4.47%
Vertex Pharmaceuticals Inc. (VRTX) $86.73 -4.07%
Incyte Corp. (INCY) $77.11 -3.61%
Regeneron Pharmaceuticals Inc. (REGN) $354.21 -3.36%
Linear Technology Corp. (LLTC) $46.15 -3.25%
Endo International Plc (ENDP) $16.44 -2.84%
Alphabet Inc. Class A (GOOGL) $704.25 -2.76%
Alphabet Inc. Class C (GOOG) $691.72 -2.62%
Activision Blizzard Inc. (ATVI) $38.08 -2.43%
Apple Inc. (AAPL) $95.33 -2.28%