Stocks In The Red To Start Quarter; Semis Are Hit Hard

The major stock market indexes are all slightly in the red in afternoon trading, flat-to-up from the last hour, but above the lows of the day. The averages are all down almost equally.


The Nasdaq composite is down 0.4%, while the S&P 500 is down 0.3%. The Dow Jones Industrial Average is off 0.3% and the Russell 2000 has fallen 0.4%. NYSE volume is down 5.4% and Nasdaq volume is down 12.3% compared with the same time on Thursday, on this last day before a long holiday weekend.

The ISM Manufacturing Index dropped to 53.0 from 56.1 in May, the weakest number since June 2020. Analysts were looking for 54.5. This decrease shows weakening in the demand for goods, and that the U.S. economy is quickly slowing, according to Bill Adams, chief economist for Comerica Bank.

Electric Company Hits Buy Point

PNM Resources (PNM) is up 0.9%, and rose above the buy point of 48.42 in a flat base. The chart shows a new high on a relative strength line that is climbing steeply.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 30734.27 -41.16 -0.13
S&P 500 (0S&P5) 3776.73 -8.65 -0.23
Nasdaq (0NDQC ) 10979.10 -49.64 -0.45
Russell 2000 (IWM) 169.40 +0.04 +0.02
IBD 50 (FFTY) 26.36 -0.49 -1.82
Last Update: 1:28 PM ET 7/1/2022

The company has solid fundamentals, including a Composite Rating of 98. PNM is a top stock in the electric utility industry group, which is ranked No. 33 out of 197 industries Investor’s Business Daily tracks.

Kinsale Capital (KNSL), U.S. property and casualty insurance company, is up 1.1% in heavy volume, on top of yesterday’s gain of 3.2%. The IBD 50 Index stock has solid fundamentals, and passes all nine criteria on the IBD MarketSmith checklist. It holds best-possible ratings of 99 on both Composite and Earnings Per Share. Analysts are expecting annual EPS growth of 18% in 2022 and 17% in 2023.

Kinsale’s stock is above the 21-day exponential moving average, with an ascending relative strength line.

Kohl’s (KSS) is down 18.4% on heavy volume, on news that it ended talks with Franchise Group (FRG) to be acquired. “Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement,” said Peter Boneparth, Kohl’s chairman. Franchise Group stock fell more than 6% to a March 2021 low.

Semiconductor Stocks Drag Stock Market

Micron Technology (MU) is down 4.9% in heavy volume, after management gave lower Q4 revenue and EPS guidance than analysts were expecting. Today’s drop is on pace for the largest daily decrease since June 16, when it fell 7%. The stock hit a low of 51.40 this morning, a level it hasn’t seen since Nov. 4, 2020.

The SPDR S&P Semiconductor ETF (XSD) is down 4.8% as semiconductor producers are facing diminishing consumer demand in items such as PCs and smartphones.

Bitcoin is up 3% today to $19,320, after hitting a low of $18,525 late Thursday.

The Innovator IBD 50 ETF (FFTY), a gauge of growth stocks, is down 1.8%, underperforming the broad stock market.


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