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The major averages ended April on a lower note, but managed to escape with monthly gains. The S&P 500 lost 1.0% and narrowed its April advance to 0.9% while the Nasdaq Composite (-1.6%) underperformed today and ended the month (+0.8%) just behind the benchmark index.  

Equity indices faced selling pressure from the get-go with the largest sector—technology (-1.6%)—leading the daylong retreat. The influential group faced broad-based weakness with its top component—Apple (AAPL 125.15, -3.49)—sliding 2.7% after the Wall Street Journal reported that some watch components provided by AAC Technologies (AACAY 53.31, -2.79) may be defective. That being said, other sector members also struggled with Yelp (YELP 39.36, -11.92) cratering in reaction to its quarterly report. Shares of YELP tumbled 23.2% in reaction to disappointing earnings/revenue and cautious revenue guidance for Q2.

The tech sector contributed to the underperformance of the Nasdaq, but the index also faced significant weakness in the biotech group. The iShares Nasdaq Biotechnology ETF (IBB 333.66, -11.15) lost 3.2% and settled just above its 100-day moving average (331.05). The ETF dropped 2.8% in April while the health care sector (-1.5%) underperformed today and lost 1.4% for the month.

Elsewhere among influential groups, the industrial sector (-0.9%) ended ahead of the broader market, but that masked relative weakness among transport stocks. The Dow Jones Transportation Average lost 1.3%, ending the month lower by 1.7%. On the earnings front, freight carrier Con-way (CNW 41.10, -1.40) lost 3.3% after reporting a one-cent beat on light revenue while shipper Kirby (KEX 78.53, -3.37) dropped 4.1% after its cautious guidance overshadowed a one-cent beat.

All ten sectors finished the day in negative territory with energy (-0.4%) succumbing to the pressure during late afternoon action. The sector displayed intraday strength thanks to crude oil's 1.8% advance to $59.63/bbl. For the month, the energy sector gained 6.6% while crude oil spiked 20.8% amid a pullback in the dollar.

Fittingly, the Dollar Index (94.78, -0.43) retreated again today, which represented the seventh consecutive decline. Greenback weakness was a recurring theme in April with the Dollar Index losing 3.5% for the month after posting nine monthly gains. The euro benefitted from the pullback in the dollar with the single currency rising from 1.0731 to 1.1225 in April.

Treasuries retreated in the morning, but reclaimed all of their losses during the day. The 10-yr yield ended at 2.04%, representing the highest level since mid-March.

Today's participation was above average with month-end flows likely responsible for the difference. As a result, more than a billion shares changed hands at the NYSE floor.

Economic data included initial claims, Personal Income/Spending data, Q1 Employment Cost Index, and Chicago PMI:

• The initial claims level declined to 262,000 for the week ending April 25 from an upwardly revised 296,000 (from 295,000) while the consensus expected a decline to 290,000 
  • According to the Department of Labor, there were no special factors that impacted the initial claims reading, which hit the lowest level since April 2000 
• Personal income growth was virtually flat in March after increasing 0.4% in February while the consensus expected an increase of 0.2% 
  • That was the weakest personal income increase since December 2013 
  • Personal spending increased 0.4% in March after increasing an upwardly revised 0.2% (from 0.1%) in February while the consensus expected an increase of 0.5% 
• The Employment Cost Index increased 0.7% in Q1 2015 after increasing a downwardly revised 0.5% (from 0.6%) in Q4 2014 while the consensus expected an increase of 0.6% 
  • Wages and salaries increased 0.7% in the first quarter, up from a 0.6% increase in Q4 2014 
  • Benefits spending growth held steady at 0.6% 
• The Chicago PMI increased to 52.3 in April from 46.3 in March while the Consensus expected an increase to 50.0 
  • The increase ended two consecutive monthly contractions 
  • The Production Index increased to 52.7 in April from 49.3 in March 

Tomorrow, the ISM Index for April (consensus 51.9), March Construction Spending (expected 0.4%), and the final reading of the April Michigan Sentiment Index (consensus 96.0) will all be released at 10:00 ET.

• Nasdaq Composite +4.3% YTD 
• Russell 2000 +1.3% YTD 
• S&P 500 +1.3% YTD 
• Dow Jones Industrial Average +0.1% YTD