Tech drags Wall St lower; financials buoy Dow

Posted June 16, 2017

USA retail sales dropped 0.3% in May, the biggest decline in 16 months.

Earlier yesterday, data showed US consumer prices unexpectedly fell in May and retail sales recorded their biggest drop in 16 months. A slide in technology stocks pulled down the Nasdaq Composite yesterday and the S&P 500 ended slightly lower, as investors anxious about the pace of economic growth after weaker-than-expected inflation numbers and an interest rate hike from the Federal Reserve.

At 8:33 a.m. ET, Dow e-minis were up 25 points, or 0.12 percent, with 7,053 contracts changing hands.

NASDAQ measures a number of indices reflecting the reaction of USA's high tech markets and business environments on the country's political and economic developments which have an impact on high tech markets.

"With the weak data, you start to wonder why the Fed is so bent on raising rate".

S&P 500 e-minis were up 1.25 points, or 0.05 percent, with 134,445 contracts traded.

"The market should take confidence in the fact that they're being very transparent in setting clear policy steps in terms of how they normalize the balance sheet", said Heidi Learner, chief economist for Savills Studley, a unit of Savills Plc, in NY.

The Fed officials agreed on a plan to reduce its $4.5 trillion balance sheet in a "gradual" and "predictable" manner. On the flip side, energy stocks plummeted along with crude oil futures and weighed on the S&P 500 Index ( SPX ), and an afternoon decline in tech stocks dragged the Nasdaq Composite (COMP) into the red for the third session in four.

The Dow Jones Industrial Average (DJIA- 21,374.56) briefly lost steam after the Fed announcement, but shot higher in the final minutes of trading, touching an all-time high of 21,391.97.

Five of the 11 major S&P sectors were lower, with energy declining 2.2 percent as oil prices tumbled after data showed a surprise build in USA inventories.

Just 1.9% of active managers whose domestic equity funds ranked in the top quartile of all funds in March 2015 remained in the top quartile by the end of March 2017, S&P Dow Jones Indices found in a study published Wednesday.

Traders work on the floor of the New York Stock Exchange June 2, 2017.

Facebook, Mircosoft and Alphabet, which had been hit hard by a selloff in the tech sector earlier this week, rose for the second straight day.

H&R Block rose 10.6 percent to $29.79 after the tax preparation service provider's fourth-quarter revenue and profit beat analysts' expectations.

Advancing issues outnumbered decliners on the NYSE by 1,356 to 1,247. On the Nasdaq, 1,578 issues fell and 1,069 advanced.