US stocks mixed as strong Q2 ends
Traders Michael Zicchinolfi, left, and Jonathan Niles work on the floor of the New York Stock Exchange, Monday, June 30, 2014. Wall Street stocks Monday turned in a mixed performance to close a strong second quarter after US pending home sales jumped but automaker General Motors announced another massive auto recall. AP PHOTO/RICHARD DREW
NEW YORK–Wall Street stocks Monday turned in a mixed performance to close a strong second quarter after US pending home sales jumped but automaker General Motors announced another massive auto recall.
The Dow Jones Industrial Average lost 25.24 points (0.15 percent) at 16,826.60, while the broad-based S&P 500 dipped 0.73 (0.04 percent) to 1,960.23.
But the tech-rich Nasdaq Composite Index rose 10.25 (0.23 percent) to 4,408.18.
The Nasdaq also scored the biggest gains for the second quarter, rising 4.98 percent. The Dow increased 2.24 percent over the three-month period, while the S&P 500 advanced 4.69 percent.
“People want to show the stronger stocks in their portfolio at the end of the quarter,” Michael James of Wedbush Securities said of the Nasdaq’s Monday gain.
The National Association of Realtors reported that the pending home sales index jumped 6.1 percent in May to 103.9, the first time the index has topped 100 since last November.
But GM recalled another 8.4 million vehicles in North America following seven crashes and three fatalities. GM, under scrutiny following an ignition-switch recall scandal, also raised its second-quarter estimate of recall costs to $1.2 billion from $700 million.
GM shares dropped 0.9 percent.
Micron Technology jumped 4.6 percent after Credit Suisse added the chipmaker to its list of top investment ideas, citing a better pricing environment following industry consolidation.
Other tech companies to score gains include Apple (+1.0 percent), Yahoo (+2.6 percent) and video camera maker GoPro (+13.4 percent).
Biotech company MannKind jumped 9.6 percent on news that the Food and Drug Administration approved its Afrezza treatment for diabetes.
PPG, a supplier of paints, coatings and glass, announced a $2.3 billion acquisition of Mexico’s Consorcio Comex, which manufactures coatings in Mexico. PGG rose 3.0 percent.
Devon Energy announced the sale of non-core energy assets in Texas and other sites to Linn Energy for $2.3 billion. Devon dipped 0.1 percent, while Linn rose 1.4 percent.
Bond prices rose. The 10-year US Treasury dipped to 2.52 percent from 2.53 percent, while the 30-year declined to 3.34 percent from 3.36 percent. Bond prices and yields move inversely.
