Stock Market Closes Lower As Small Caps, Leaders Suffer More


The stock market closed a ways off the session lows Friday, but still broadly lower as indexes took back some of the new year’s gains.


The Nasdaq composite fell as much as 1.2% and closed 0.9% lower. The composite fell 1.5% for the week and is up about 1% for the new year.

The S&P 500 fell 0.7% and the Dow Jones Industrial Average lost 0.6%. For the week, the S&P fell 1.5% and the Dow 0.9%.

Small caps, the hottest sector of the new year, took a rest. The Russell 2000 fell 1.5% Friday, and ended the week with a 1.5% increase.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 30814.26 -177.26 -0.57
S&P 500 (0S&P5) 3768.25 -27.29 -0.72
Nasdaq (0NDQC ) 12998.50 -114.14 -0.87
Russell 2000 (IWM) 210.67 -3.27 -1.53
IBD 50 (FFTY) 44.17 -0.50 -1.12
Last Update: 4:20 PM ET 1/15/2021

Volume fell on the Nasdaq and rose on the NYSE, unconfirmed numbers showed. Declining stocks led advancers by about 2-t0-1 on the Nasdaq and NYSE.

Defensive sectors performed relatively better. Select Sector Real Estate SPDR (XLRE) climbed 1.3% and Select Sector Utilities (XLU) rose 1%. S&P communications services and health care sectors also rose. Energy was the weakest S&P sector, down after a two-week surge.

Investors appeared to be disappointed in President-elect Joe Biden’s massive stimulus plan, which was announced late Thursday.

The solar energy group, No. 1 or in the top three industry groups for months, tumbled almost 8% despite the fact that Biden favors big spending on clean-energy programs.

Banking Stocks Fall On Earnings

SPDR S&P Bank ETF (KBE) sold off 2.2% after some major banks reported mixed quarterly results. JPMorgan Chase (JPM) fell 1.8%, while Citigroup (C) and Wells Fargo (WFC) sold off 7% and 8%, respectively. All three had just made at least 10-month highs before Friday’s news.

Innovator IBD 50ETF (FFTY), an index of leading stocks, fell 1.1%.

With the stock market broadly lower, few stocks broke out, and barely any among top-rated issues.

SciPlay (SCPL) rose above the 18.60 buy point of a cup base, but closed below the entry. Volume was heavy, so there was institutional interest on the move.

S&P Retail SPDR (XRT) slid 2.4% after the December retail sales report showed a drop of 0.7%, much weaker-than-expected and the third monthly decline in a row.

“Although each state has its own different measures, different tiers, to control the spread, there is one common thread and that is the inability to have a nice a meal at a restaurant, or grab a drink at the local pub, those are big no-no’s,” Jennifer Lee, Senior Economist BMO Capital Markets, said in a report. “And the hospitality sector is suffering. Sales of food services and drinking places dried up for the third consecutive month, with December’s 4.5% drop the most since the first wave.”

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia


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