Stocks Close Lower on Friday After Selloff
- By Julie Young
The Dow Jones Industrial Average closed at 25,502.32 on Friday with a loss of 460.19 points or -1.77%. The S&P 500 closed at 2,800.71 for a loss of -54.17 points or -1.90%. The Nasdaq Composite closed at 7,642.67 for a loss of 196.29 points or -2.50%. The VIX Volatility Index was higher at 16.68 for a gain of 3.05 points or 22.38%.
For the week, the Dow Jones was down 1.1%, the S&P 500 fell 0.9% and the Nasdaq had a return of 0.8%. For the year, the Nasdaq has gained 15.2%, the S&P 500 has a return of 11.7% and the Dow Jones has a gain of 11.6%.
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The intrinsic value of NKE
Friday's market movers
Selling pressure led to stock losses Friday. Investors were spooked by an inversion in the yield curve, which has historically been a recession sign. In Friday's trading, the yield on the 10-year Treasury fell below the yield on the three-month Treasury, with yields ending the day at 2.439% and 2.458%.
A vote for a delayed Brexit in the U.K. was also a tipping point for stocks as it causes more concern for the world economy's global growth. Some lowered economic readings, combined with the Federal Reserve's downgraded economic outlook this week, further contributed to the day's losses.
Economic reports affecting market trading included the following:
The Markit Manufacturing PMI decreased to 52.5, a 21-month low.
The Markit Services PMI decreased to 54.8, a two-month low.
Existing home sales increased 11.8% in February.
Wholesale inventories increased a steady 1.2% after a previous 1.1% increase.
The Baker Hughes North American oil rig count decreased to 1,121 from 1,187.
The U.S. reported its largest-ever monthly budget deficit in February at -$234 billion.
In the Dow Jones Industrial Average, the following stocks led losses:
Nike (NKE) was down -6.50% after reporting third-quarter 2019 earnings Thursday.
DowDuPont (DWDP) -3.64%
JPMorgan (JPM) -3.13%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,505.92 for a loss of 56.49 points or -3.62%. The S&P 600 closed at 918.09 for a loss of 34.04 points or -3.58%. The Dow Jones Small-Cap Growth TSM Index closed at 9,577.54 for a loss of 348.67 points or -3.51%. The Dow Jones Small-Cap Value TSM Index closed at 9,212.55 for a loss of 266.46 points or -2.81%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,854.99 for a loss of 53.54 points or -2.81%; the S&P 100 at 1,239.09 for a loss of 23.83 points or -1.89%; the Russell 3000 at 1,649.05 for a loss of 35.15 points or -2.09%; the Russell 1000 at 1,550.95 for a loss of 31.16 points or -1.97%; the Wilshire 5000 at 28,909.49 for a loss of 620.75 points or -2.10%; and the Dow Jones U.S. Select Dividend Index at 694.51 for a loss of 10.96 points or -1.55%.
This article first appeared on GuruFocus.
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The intrinsic value of NKE
