The Nasdaq Composite Index fell, capping its biggest weekly slide in almost two months, as Micron Technology Inc.’s disappointing forecast sparked a selloff in semiconductor shares while investors continued to watch Greek debt talks.
Chip companies in the Standard & Poor’s 500 Index dropped the most in three months, led by Micron’s 18 percent tumble after its sales forecast missed projections. Intel Corp. lost 3 percent and SanDisk Corp. slid 1.9 percent. Nike rose 4.3 percent to a record after better-than-estimated quarterly results. Tenet Healthcare Corp. added 2.8 percent to yesterday’s 12 percent jump.
The Nasdaq lost 31.69 points, or 0.6 percent, to 5,080.50 at 4 p.m. in New York, as semiconductors led a retreat in technology shares. The S&P 500 Index slipped less than 0.1 percent to 2,101.49, after trading between its average prices during the past 50 and 100 days. The Dow Jones Industrial Average rose 56.32 points, or 0.3 percent, to 17,946.68 as Nike added about 30 points to the index’s gain.
“The selloff here seems to be more in tech than anywhere else, which could be weighing on the market overall,” said Tim Ghriskey, who helps oversee $1.5 billion as managing director and chief investment officer at Solaris Asset Management. “Traders are taking money off the table in front of the weekend and perhaps even quarter-end as we head into earnings season and a short week.”
FTSE Russell concluded the annual revisions to its equity benchmark gauges, usually spurring one of the busiest sessions of the year. About $5.7 trillion is benchmarked to Russell indexes worldwide, including $800 billion in passive products such as exchange-traded funds.
In three of the previous four years, the reconstitution day ranked in the top five busiest trading sessions, data compiled by Bloomberg show. About 10 billion shares traded hands on U.S. exchanged Friday, the most this year and 59 percent above the three-month average.
Technical talks are underway in Brussels before euro-area finance ministers meet on Saturday to hammer out an agreement ending a five-month standoff with Greece. They’ll reconvene armed with a proposal by creditors to unlock as much as 15.5 billion euros ($17.3 billion) and extend Greece’s program through November.
“There’s a couple of factors going on,” said Jon Corpina, a senior managing partner at Meridian Equity Partners. “You have the overhanging impending headlines coming out of Greece. Couple that with the Russell and the end of the quarter and it’s an interesting yin and yang that’s performing in the market right now.”
The S&P 500 rose within 0.3 percent of a record earlier this week, and is poised for a 10th straight quarterly gain. Stocks have been trading in a tight range as investors await a resolution to the Greek crisis and assess data for hints on when the Federal Reserve will start raising interest rates. The benchmark slipped 0.4 percent this week to mark its longest streak since 1993 without posting a weekly move of more than 1 percent.
Data today showed consumer confidence climbed in June to a five-month high as an improving job market boosted Americans’ attitudes about the world’s largest economy. Data Thursday showed consumer spending in May climbed the most in almost six years.
The Chicago Board Options Exchange Volatility Index gained less than 0.1 percent to 14.02, after a two-day rise of almost 16 percent. The gauge, known as the VIX, is down 27 percent this year. Seven of the S&P 500’s 10 main groups rose, with Nike leading consumer shares higher, while Micron dragged technology to the bottom.
Semiconductors in the benchmark fell 3.2 percent, the most since March. Micron dropped the most since Dec. 2008, while its weaker-than-estimated sales outlook and sluggish PC demand weighed on other component makers. Qorvo Inc. and Nvidia Corp. lost more than 2 percent. Hewlett-Packard Co. slid 2.2 percent to a more than three-month low.
Software makers Red Hat Inc., Autodesk Inc. and Adobe Systems Inc. dropped more than 1.4 percent. Microsoft Corp. fell 0.9 percent, erasing an earlier gain of as much as 1.4 percent.
Raw-materials companies retreated for a fourth session amid a rising dollar, the longest streak in more than three months. Steel company Nucor Corp. lost 1.4 percent to a three-month low, while Monsanto Co. declined 2 percent to its lowest in almost 17 months.
Zoetis Inc. plunged 12 percent, the most in more than two years. A report said that Valeant Pharmaceuticals International Inc. wouldn’t make an offer to buy the company, contradicting a report the day before saying a deal could happen.
Cablevision Systems Corp. rose for a second day, up 4 percent, while News Corp. and Darden Restaurants Inc. advanced at least 2.4 percent amid improved consumer sentiment and spending. Bed Bath & Beyond Inc. rebounded from Thursday’s post-earnings 1.6 percent drop, rising 2.7 percent.
Finish Line Inc. added 4.6 percent to a six-month high after quarterly profit and revenue exceeded analysts’ estimates. The athletic shoe retailer also got a lift from Nike’s better-than-estimated results and outlook on orders. Foot Locker Inc. increased 1.9 percent to an all-time high.
Financial firms in the S&P 500 snapped a two-day skid, with insurance shares rising as U.S. Treasury yields jumped. The benchmark government bond’s yield finished the five-day period at a two-week high. Allstate Corp. and Ace Ltd. rose at least 1.2 percent. Fund manager T. Rowe Price Group Inc. added 1.7 percent, the most since April, after Susquehanna Financial Group raised its rating on the shares to positive from neutral.
Tenet Healthcare and HCA Holding Inc. climbed for a second day, rising at least 1.2 percent. The gains came amid positive analyst comments after Thursday’s favorable Supreme Court ruling.