Stock Market News For Dec 24, 2018
Zacks Investment Research | Dec 23, 2018 09:31PM ET
U.S. stocks declined sharply for the third successive day on Friday as investors remained skeptical about Fed’s monetary stance in 2019 and fear of a long-term partial government shutdown. Moreover, conflicting news on the United States – China trade war front also aggravated the situation. All three major stock indexes closed in negative territory for the day as well as for the week as a whole.
The Dow Jones Industrial Average (DJI) closed at 22,445.37, declining 1.8% or 414.23 points. The S&P 500 Index (INX) lost 2.1% to close at 2,416.62. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,332.99, shedding 3% or 195.41 points.
A total of 15.18 billion shares were traded on Friday, higher than the last 20-session average of 8.81 billion shares. Friday’s share trading volume was highest single day transactions since August 2011. Decliners outnumbered advancers on the NYSE by 3.57-to-1 ratio. On the Nasdaq, decliners had an edge over advancers by 3.77-to-1 ratio. The CBOE VIX increased 6.1% to close at 30.11.
How Did the Benchmarks Perform?
Notably, all three major stock indexes are currently under correction territory and in the red year to date. The Dow ended in negative territory for the third straight day after recording its lowest close since October 2017. Notably, 27 components of the 30-stock blue-chip index finished in the red while only three finished in the green.
The S&P 500 also ended in negative territory for the third consecutive day. The benchmark index posted its lowest close since July 2017. The Communications Services Select Sector SPDR (XLC) and Technology Select Sector SPDR (XLK) lost 3.6% and 3.5%, respectively. Each of the Consumer Discretionary Select Sector SPDR (XLY) and Real Estate Select Sector SPDR (XLRE) declined 2.6%. Both Financials Select Sector SPDR (XLF) and Industrials Select Sector SPDR (XLI) dropped 2.5%. Notably, all 11 sectors of the broad-market index closed in the red for second straight day.
The tech-heavy Nasdaq Composite ended in the red for the third successive day due to weak performance by FAANG stocks. The tech-laden index posted its lowest close since August 2017. At Friday’s close, Nasdaq Composite fell into bear market as it closed 21.9% drown from its recent high posted on Aug 29. Shares of Facebook Inc. (NASDAQ:FB) and Netflix Inc. (NASDAQ:NFLX) declined 6.3% and 5.5%, respectively. Both stocks carry a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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