The Dow, S&P, and Nasdaq are all
up between 12% and 14% as the first half of the year ends. June did not end on
a positive note with all indexes ending the month down roughly 1% making it the
first month of the year with negative returns.
Fed officials have been in major
damage control mode, since Fed chairman Ben Bernanke kicked off tumult in the
stock, bond and gold markets last week. He said the central bank could wind
down its stimulus program later this year, if the economy continues to improve.
Fed governor Jeremy Stein, while trying to calm investor fears, appeared to have
inadvertently stoked them Friday. He said the Fed could
"hypothetically" consider tapering its bond buying in September.
The Dow Jones
industrial average dipped 114
points, or 0.8%, Friday. The S&P 500 lost 0.4%. Only the Nasdaq gained ground, moving just slightly positive. As volatility
rose in June, so did the CBOE Volatility Index (VIX). The VIX rose 4% this month, and 37% for the quarter.
Bonds and gold were hit especially hard with the Fed’s news. The
mere mention of any end to bond buying has recently sent bond investors
scrambling for the exits. The yield on the 10-year Treasury note hit 2.65%
earlier this week -- its highest level since August 2011 and well above the
1.6% in early May. The yield hovered around 1.5% at the end of Friday's trading
day. Gold prices have been slammed as well.
Gold rose 1% Friday, but this was only after a slide of 13% in June.
Notable
Earnings Reports:
BlackBerry (BBRY) reported first-quarter results Friday that fell short of analysts' forecasts sending shares
down 25%.
Shares of Accenture (ACN) dropped after the consulting firm slashed expectations for
its year-end results.
Pfizer (PFE) moved up after the drug maker announced late Thursday that
it would increase its share buyback program by $10 billion.
Nike (NKE) reported better-than-expected earnings, but concerns
remain about its ability to cut costs.