Closing Stock Market SummaryThe market opened on a downbeat and never found its footing on this options expiration day. It was a risk-off trade following Germany's hot PPI data, which renewed inflationary concerns. Higher long-term rates acted as a headwind while price action in meme stocks, particularly Bed Bath & Beyond (BBBY 11.03, -7.52, -40.5%), offered a reality check for the market.
The S&P 500 was down 1.2% for the week; the Dow Jones Industrial Average was down 0.2% for the week; the Nasdaq Composite was down 2.6% for the week.
Bed Bath & Beyond fell sharply on news that Ryan Cohen's RC Ventures completed the sale of its stake in BBBY and a Bloomberg Law report that suggested the company hired Kirkland & Ellis to help address matters pertaining to the company's debt load.
Mega caps and growth stocks drove the market lower today. The Vanguard Mega Cap Growth ETF (MGK) fell 1.9% versus a 1.3% loss in the Invesco S&P 500 Equal Weight ETF (RSP). The Russell 3000 Growth Index (-1.7%) trailed the Russell 3000 Value Index (-1.2%).
Semiconductors were especially weak after Applied Materials' (AMAT 104.63, -3.64, -3.4%) cautious commentary that accompanied its earnings report. The PHLX Semiconductor Index fell 2.8%.
S&P 500 sector performance showed a risk-off trade. Countercyclical sectors, utilities (-0.1%), consumer staples (-0.4%), and health care (+0.3%), closed ahead of the broader market. Notably, utilities and consumer staples were two of only three sectors to close the week with gains, up 1.2% and 1.9%, respectively. The other week-to-date gainer was energy, up 1.0%.
The advance-decline line heavily favored decliners. Decliners led advancers by a nearly 6-to-1 margin at the NYSE and a 10-to-3 margin at the Nasdaq.
Germany's hotter-than-expected PPI reading affected Treasury market action. The 2-yr note yield rose three basis points to 3.25% and was unchanged for the week. The 10-yr note yield, flirting with the 3.00% level, rose 11 basis points on the day and 14 basis points for the week to 2.99%.
There was no U.S. economic data of note today.
Dow Jones Industrial Average: -7.4% YTD
S&P 400: -9.2% YTD
S&P 500: -11.3% YTD
Russell 2000: -12.8% YTD
Nasdaq Composite: -18.6% YTD