Closing Bell: Stocks Enter Negative Territory for June; Eyes on the Fed

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Stocks end a difficult week with losses, as all eyes turn toward the Fed.

The Dow Industrials sank 105 points, while the Nasdaq dropped 21. And a day after its second-biggest advance of the year, the S&P 500 lost 9 points. All three major averages are now in negative territory for the month.

June is proving a challenge for consumers too. According to Thomson Reuters and the University of Michigan, sentiment dipped from a six-year high in May. Economists predicted that the gauge would hold steady.

Meanwhile, prices at the wholesale level rose more than expected last month, bouncing back from a big decline in April. The increase was mainly due to higher gasoline prices; excluding energy and food costs, the core rate ticked up just slightly, indicating that inflation pressures remain in check.

WASHINGTON, DC - MAY 22: Federal Reserve Board Chairman Ben Bernanke leaves after he testified at a hearing before the Joint Economic Committee May 22, 2013 on Capitol Hill in Washington, DC. Bernanke was on the Hill to give his views of the current economic outlook. (Photo by Alex Wong/Getty Images)
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The Federal Reserve will take all the data into consideration next week, when it meets to set monetary policy. Investors will be watching closely for any more hints about when Ben Bernanke and company may start winding down their quantitative easing program.

Policymakers may also want to consider the latest warning from the International Monetary Fund. The IMF cut its forecast for U.S. economic growth next year to 2.7 percent, saying spending cuts and higher tax rates could weigh on consumer demand.

Financial stocks were a drag on the broader market today: JPMorgan Chase and American Express were two of the biggest losers on the Dow.

But among all S&P 500 stocks, Game Stop led the way with a 4 percent gain. Investors hope the introduction of the Playstation 4 and Xbox One will boost sales for the video game retailer.

Restoration Hardware surged 16 percent, after reporting a better-than-expected profit in its latest quarter. And Groupon jumped 11.5 percent on an analyst upgrade from Deutsche Bank.

Finally, an outperform rating from Credit Suisse produced a 6-.5 percent bump for SolarCity. The news also gave Tesla shares a boost -– CEO Elon Musk is a major shareholder in the solar panel company.


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62 Comments

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eyedocandynj55

HOWARD STERN FOR PRESIDENT....BABABOOOEY

June 17 2013 at 1:37 AM Report abuse -3 rate up rate down Reply
analyst0042

Why do the vast majority of the people who blog on here sound like hs drop outs?
It is similar to the teen age banter heard in school.

June 16 2013 at 7:51 PM Report abuse -1 rate up rate down Reply
2 replies to analyst0042's comment
h.hughjardon

You looking forward to junior year this fall?

June 16 2013 at 11:31 PM Report abuse -1 rate up rate down Reply
h.hughjardon

Fuh cough anal

June 16 2013 at 11:40 PM Report abuse -1 rate up rate down Reply
paddleman1928

two things and two things only drive the market. The FED pumping in $$$$ like there is no tomorrow, and supercomputers which do millions of trades a minute to nudge the market in whatever direction the computer"s owners want it to move.

June 16 2013 at 3:59 PM Report abuse +2 rate up rate down Reply
1 reply to paddleman1928's comment
h.hughjardon

And yet volume is relatively low.

June 16 2013 at 4:58 PM Report abuse rate up rate down Reply
Davie2743

Easy money for the foreseeable future, record corporate profits, unemployment lower than the last five years, housing prices and new construction booming and investors are worrying about the economy, goes to show their psychology.

June 16 2013 at 8:46 AM Report abuse -1 rate up rate down Reply
Phil Collins

We are years from any type of real Recovery and so many folks out of work and on assistance we face many slow and tough years ahead. The really sad thing is that Washington and the Politicians could care less about the people of America, some say burn them at the stake I say simply throw all the Bums out on their ears and rears.

June 16 2013 at 8:10 AM Report abuse +1 rate up rate down Reply
1 reply to Phil Collins's comment
barryaclarke

I agree with your post but most of the same electorate keep voting the same people back in office year after year. Why? I will wager all the deceit and lies from Hillary will be swept under the table in 2016 and followers will be out in the masses to support her regardless if there is someone from another party that‘s better for the job of “President of the United States“.................

June 16 2013 at 1:22 PM Report abuse rate up rate down Reply
1 reply to barryaclarke's comment
h.hughjardon

Aren't those dem primaries gonna be fun? You remember how nasty they were in 2008? Hillary and hugobama? How low-life character assassinations were the norm from tbe left during the 2012 generals? These radical mothereffers will stop at nothing to get their next puppet in power to further their anti-American agenda.

June 16 2013 at 5:04 PM Report abuse +2 rate up rate down
jwmgrand

Wait till the rash of accounting errors ...... gee we are sorry ... our business model did not anticipate that sudden pullback ...... nothing but smoke and mirrors ... and rigged decks ... im out !

June 15 2013 at 7:15 PM Report abuse rate up rate down Reply
stock market

Oh, I forgot. Don't forget the illegals that will be allowed to come out of the shadows.....Didn't know they were hidding. Have you been in a WalMart, KMart, Dollar Store lately.....they aren't hiding.

June 15 2013 at 6:24 PM Report abuse +3 rate up rate down Reply
stock market

The bubble will burst, again! Nothing is good here in NV and in CA you can put on a happy face but with no good paying jobs, mfg. back in the USA - we have nothing. When Obamacare hits the fan, so will the s#it.

June 15 2013 at 6:21 PM Report abuse +6 rate up rate down Reply
the aol experien

The stock market is as artificially inflated as a woman with new set of breast implants! An average investor doesn’t stand a chance there’s way too many crooks involved.

June 15 2013 at 5:33 PM Report abuse +1 rate up rate down Reply
juststeve35

But, but, but....

The Left SWEARS the increases in the stock market had NOTHING to do with the Fed or QE1, QE2, et al, but were instead directly related to the awesome performance of our Commander-in-Chief!

So this article must be just another lie spread by Dubya.

June 15 2013 at 1:06 PM Report abuse +1 rate up rate down Reply