The Market Disappoints for a 5th Straight Session
Despite a sharp rally in the final hour of trading, the markets weren't able to emerge into positive territory for the day. The Dow Jones Industrial Average (INDEX: ^DJI) fell 48 points, or 0.4%, to mark its fifth straight day of declines. The tech-heavy Nasdaq Composite fell 0.5%, while the S&P 500 (INDEX: ^GSPC) fell flat on the day.
The biggest news event of the day was the 2 p.m. ET release of minutes from the Federal Reserve's June policy meeting. Stocks fell sharply following the release, with the Dow falling as much as 118 points in response to what was considered a tone less supportive of additional stimulus from the nation's central bank. Specifically, the report indicated that while "a few members" of the Federal Open Market Committee supported additional stimulus during the meeting, "several others" were convinced that additional moves were necessary only if economic conditions worsened or inflation fell consistently below its 2% benchmark.
Among individual Dow components, economically sensitive industrials Boeing (NYS: BA) and United Technologies (NYS: UTX) were the biggest losers, falling 2.3% and 2.2%, respectively. The fall comes in the face of positive developments at both companies, with Boeing having what appears to be a successful showing at the Farnborough Air Show, where it received orders amounting to $19.7 billion from jet leasing companies. United Technologies recently received a big win of its own, with its $8.5 billion contract from the U.S. military to supply helicopters through its Sikorsky unit.
Moving to the S&P 500, the biggest loser on the day was electronics retailer Best Buy (NYS: BBY) , whose shares fell 8.4% in reaction to a negative earnings preannouncement from competitor hhgregg, which saw its shares fall 36% on lower-than-expected Q2 results and markedly lower fiscal 2013 guidance. Particular weakness was noted within its video category, which declined 16.7% on a comparable-store basis, certainly not the kind of news that bodes well for trends within Best Buy stores.
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At the time this article was published Brenton Flynn owns no shares of the companies mentioned. The Motley Fool owns shares of Best Buy.Motley Fool newsletter serviceshave recommended buying shares of hhgregg. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days. The Motley Fool has adisclosure policy.
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