Wall Street was hit with another round of selling pressure as the short-squeeze frenzy and volatility added to coronavirus and vaccine woes — and more in Friday’s stock market recap.
The uncertainty over stimulus also weighed on sentiment with the losses sealing weekly losses for the major indexes.
The Dow dropped 1.9% following the afternoon fade to 29,856.
The Nasdaq was also down 2% after tapping a low of 12,985.
The S&P 500 sank 1.9% with the intraday low reaching 3,694.
The Russell 2000 was lower by 1.6% after bottoming at 2,066.
For the week, the Nasdaq fell 3.5%; the S&P 500 and the Dow gave back 3.3%; and the Russell 2000 nosedived 4.6%. For the month, the Dow was down 2%; the S&P 500 declined 1.1%; the Nasdaq was up 1.4%; and the Russell 2000 zoomed 5.4%.
Energy and Technology led sector laggards after sinking 3.3% and 2.4%, respectively. There was no sector strength.
Shares of Booz Allen Hamilton Holding Corp. (NYSE: BAH) were down nearly 11% after missing revenue estimates while lowering its 2021 outlook. The company reported a profit of $1.04 a share on revenue of $1.9 billion versus forecasts of 93 cents on revenue of $2 billion.
The company raised its fiscal year 2021 earnings view to $3.70-$3.85 from $3.60-$3.75 versus consensus estimates at $4.20. However, they lowered their revenue growth to 4.8%-6% from 7%-9%.
The percentage of Nasdaq 100 stocks trading above the 50-day moving closed at 56.86%, down 5.88%. Near-term and upper support at 55%-52.5% was breached but held. A move below the latter would indicate a retest towards 50%-47.5% and levels from late October. Resistance is at 57.5%-60%.
The percentage of S&P 500 stocks trading above the 200-day moving average settled at 84.95%, down 1.98%. Current and upper support at 85%-82.5% failed to hold. A close below the latter would signal weakness towards 80%-77.5% and slightly overbought levels from early November. Resistance is at 87.50%-90%.
From the global stock market recap, European markets settled lower.
France’s CAC 40 dropped 2% and the Stoxx 600 stumbled 1.9%. UK’s FTSE 100 gave back 1.8% and Germany’s DAX 30 was off 1.7%. The Belgium20 fell 1.2%.
Asian markets were weak.
South Korea’s Kospi plummeted 3% and Japan’s Nikkei tumbled 1.9%. Hong Kong’s Hang Seng sank 0.9% while Australia’s S&P/ASX 200 and China’s Shanghai were down 0.6%.
Personal income increased 0.6% in December, and spending dropped -0.2%, versus a -1.3% drop in November, with spending declining -0.7%. Compensation rose 0.5% versus 0.4% previously, with wage and salary income also increasing 0.5% from 0.4%. Disposable income bounced 0.6% after the -1.5% pullback in November. The savings rate rose to 13.7% versus 12.9%.
Employment cost index rose 0.7% in the fourth quarter following the 0.5% gain in the third quarter. A lot of the strength was in the wage and salary component that increased 0.9% after rising 0.4% previously. Benefit costs were up 0.6%, the same as in Q3. On a 12-month basis, ECI grew at a 2.5% year-over-year pace versus 2.4% previously.
The iShares 20+ Year Treasury Bond ETF (Nasdaq: TLT) was down for the second straight session following the morning pullback to $151.30. Prior and upper support at $151.50-$151 was breached but held. A close below the latter would signal additional weakness towards $150.50-$150 with the monthly low at $149.93.
Lowered resistance is at $152.50-$153.
The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) was up for the fourth time in six sessions after zooming to an intraday and fresh monthly high of 37.51. Current and lower resistance at 37-37.50 was breached but held.
Support is 32.50-32 followed by 30.50-30.
The S&P 400 Mid Cap Index (NYSE: MID) was down for the second straight session after testing a low of 2,333. Fresh and upper support at 2,350-2,325 failed to hold. A close below the latter would indicate further weakness towards 2,300-2,275.
Resistance is at 2,375-2,400 followed by 2,425-2,450.
RSI (relative strength index) is in a downtrend with upper support at 45-40 failing to hold. A move below the latter would signal additional weakness towards 35-30 and levels from late September. Resistance is at 50.
The Materials Select Sector SPDR Fund (NYSE: XLB) was down for the sixth time in seven sessions with the intraday low tapping $70.28. Near-term and upper support at $70.50-$70 was breached but held. A close below the latter would indicate a retest towards $69-$68.50 and levels from mid-November.
Resistance is at $71.50-$72 and the 50-day moving average.
RSI is back in a downtrend with key support at 35 holding. A close below this level would suggest further weakness towards 30-25 and prior lows from last March. Resistance is at 40.
Check back after the closing bell for the most important news and numbers in the WealthPress stock market recap.