Stocks dropped on Friday and the three major indices were down for the week, with the SPX having its worst week since February. Investors are concerned that economic growth will be slowing in the second half of the year and also about the possibility that the Fed will reduce asset purchases by the end of the year. The easy money policy from the Fed has been a major driver of the stock market rise to record highs this year. Specific issues focus on the slowdown in hiring in August and dropping consumer sentiment that are likely related to the surging Delta variant infections.
The labor department reported that the producer price index for August rose 0.7% from July, above the estimate of 0.6%. The annual increase is 8.3%, the highest since records were started in 2010. The July value was 7.8%. Goods were up 1% and services up 0.7%. The core PPI, excluding food and energy, was up 0.6% on the month and 6.7% for the year. Supply shortages were blamed as the main cause for the increased prices.
The Commerce Department reported that wholesale inventories rose 0.6% in July, in line with estimates. The increase in June was 1.2%. Inventories were up 11.5% from July 2020. Inventory growth should contribute to economic growth in the next 6 months.
No major economic reports will be released on September 13.
The SP 500 is down by 0.77% to close at 4458.58. The index is down 1.69% over five days, down 0.21% over one month, up 4.97% over three months and up 33.45% over one year.
The trailing P/E is 31.70 compared to 37.92 one year ago and estimated future P/E 22.27. Dividend yield is currently 1.29 compared with 1.77 one year ago.
Leading stocks were NOV up 2.91%, UPS up 2.25%, GM up 2.21%, ATVI up 2.04% and EA up 1.98%.
Trailing stocks were KR down 7.50%, AAL down 6.19%, PENN down 4.91%, UAL down 4.81% and DVA down 4.68%.
The Dow Jones industrial Average is down by 0.78% to close at 34607.72. The DOW is down 2.15% over five days, down 2.56% over one month, up 0.37% over three months and up 25.09% over one year.
The trailing P/E is 23.71 compared with 27.03 year ago and an estimated future P/E of 19.24. The current dividend yield is 1.83% compared with 2.23 one year ago.
Leading stocks were INTL up 0.82%, MCD up 0.24%, DOW up 0.22%, NKE up 0.15% and PG up 0.10%.
Trailing stocks were AAPL down 3.31%, UNH down 2.22%, WBA down 2.21%, BA down 1.70%, and CRM down 1.36%.
The NASDAQ composite is down by 0.87% and closed at 15115.49. NASDAQ is down 1.61% over five days, up 1.97% over one month, up 7.44% over 3 months and up 39.27% over one year.
Leading stocks were ISEE up 62.49%, ECHO up 52.30%, FAMI up 34.41%, AFRM up 34.37% and ENDP up 32.86%.
Trailing stocks were KAVL down 43.27%, MRSN down 39.12%, APLS down 37.19%, VRPX down 25.59%, and IMPL down 23.76%.
The MidCap SP400 is down by 0.93% to close at 2686.53. The SP400 is down 2.68% for the past 5 days, down 1.64% for the past month, down 2.39% for the past 3 months and up 44.84% over the past year.
Leading stocks were QDEL up 5.92%, PEN up 3.96% and ADNT up 3.66%.
Trailing stocks were TDC down 9.35%, STAA down 5.65% and CAR down 5.15%
The SmallCap SP600 is down by 0.28% to close at 1340.70. The SP600 is down 2.71% for the past 5 days, down 1.38% for the past month, down 3.04% for the past 3 months and up 54.54% over the past year.
Leading stocks were ECHO up 52.30%, ENDP up 32.86% and FIZZ up 12.31%.
Trailing stocks were NTUS down 7.33%, RGS down 6.2% and VCEL down 5.46%.
The CBOE VIX is up 11.44% and closed at 20.95. The VIX is up 27.67% over five days, up 35.60% over one month, up 33.87% over three months and down 22.03% over one year.
On the New York stock exchange 1192 stocks advanced and 2064 declined, while on Nasdaq 1499 advanced and 2879 declined.
There were 110 new 52 week highs and 30 new 52 week lows on NYSE with 86 new highs and 54 new lows on NASDAQ.
The 2 year Treasury note yield is 0.221% and 10 year is 1.341%. The 10 year yield is up 1.5% over five days, up 5.5% over one month, down 11.2% three months ago, and up 67.0% one year ago.
SP500 Sector Performance % change
Consumer Staples -0.34
Consumer Discretionary -0.57
Communication Services -0.90
Health Care -0.94
Information Technology -0.99
Real Estate -1.23
Energy down 1.78% over five days, down 3.71% over one month, down 13.56% over three months and up 46.72% over one year.
Utilities has been down 1.57% over five days, down 0.55% over one month, up 3.55% over three months and up 16.29% over one year.