Wall Street swings, choppy trading near the end of the quarter

A stock trading information screen is displayed on the floor of the New York Stock Exchange (NYSE) in New York City, US, June 27, 2022. REUTERS/Brendan McDermid

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  • The US economy shrank in the first quarter amid record trade deficit
  • General Mills rose as sales outpace higher prices
  • Bed Bath & Beyond replaces CEO, shares falter
  • Indexes advance: Dow 0.59%, Standard & Poor’s 0.22%, Nasdaq 0.18%

NEW YORK (Reuters) – Wall Street wobbled on Wednesday as investors approached the finish line of a gloomy month, a dismal quarter and the worst first half of the S&P 500 since President Richard Nixon’s first term.

The three major US stock indices were last up modestly, after spending most of the session swinging between red and green.

Market leaders Apple (AAPL.O), Amazon.com (AMZN.O), and Microsoft (MSFT.O) provided upside power, while economically sensitive chips (.SOX) were small-scale (.RUT) and transportation (.DJT). ) Underperformance of the broader market.

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Heading into the end of the month and the second quarter of the day, the S&P 500 has set a path for the biggest first-half decline since 1970.

As for the Nasdaq, it was on track for its worst performance in the first half of the year, while the Dow looked on track to post the biggest percentage drop in January-June since the financial crisis.

The three indices are bound to record their second consecutive quarterly declines. The last time this happened was in 2015.

But where do the stocks go from here?

“If you look at those periods, going forward, the one-year and two-year returns weren’t bad,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. “If I were really a long-term investor, the analogy I would take is why buy at Tiffany’s prices instead of Kmart prices?

“Unfortunately, investors tend to buy at Tiffany’s prices and tend to be scared and sell at Kmart prices,” Nolte added.

Benchmark Treasury yields are up more than 1,606 percentage points so far in 2022, their biggest jump in the first half since 1984. This explains why interest rate-sensitive growth stocks (.IGX) are down more than 26% since the start of the year.

Fed officials have reiterated in recent days their determination to rein in inflation, setting expectations for a second consecutive rate hike of 75 basis points in July, while expressing confidence that monetary policy tightening will not push the economy into recession. Read more

In economic news, Commerce Department data showed GDP contracted slightly more than previously reported in the first three months of the year, with consumer spending, which accounts for about 70% of the economy, contributing much less than originally reported. Read more

This comes after a poor consumer confidence report released on Tuesday, which showed consumer expectations dropping to their lowest level since March 2013.

The Dow Jones Industrial Average increased 183.54 points, or 0.59%, to 31,130.53 points, the Standard & Poor’s 500 increased 8.59 points, or 0.22%, to 3,830.14 points, and the Nasdaq Composite increased 20.57 points, or. 0.18% to 11202.11.

Of the 11 major S&P 500 sectors, energy stocks (.SPNY) suffered the largest percentage decline, while health care (.SPXHC) led the gainers.

The second-quarter reporting season is still several weeks away, and 130 companies in the S&P 500 announced earlier. Of those, 45 were positive and 77 were negative, resulting in a negative/positive ratio of 1.7 stronger than the first quarter but weaker than last year, according to Refinitiv data.

General Mills Packaged Food Co. (GIS.N) jumped 6.1% after its sales beat its estimates. Read more

Bed Bath & Beyond Inc (BBBY.O) fell 22.2% after the retailer announced that it had replaced CEO Mark Triton, hoping to reverse the recession. Read more

Low issues outnumbered advanced issues on the New York Stock Exchange by 2.11 to 1; On the Nasdaq, the ratio was 1.91 to 1 in favor of declining stocks.

The S&P 500 hit a new 52-week high and 36 new lows; The Nasdaq recorded 9 new highs and 259 new lows.

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Stephen Kolb reports. Additional reporting by Amruta Khandekar and Shreyachi Sanyal in Bangalore; Editing by David Gregorio

Our Standards: Thomson Reuters Trust Principles.

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