Magnificent News: First day of the second half | GM issues warning | Atlanta Fed GDP tracker points to recession

Friday, July 1, 2022

First day of the second half | GM issues warning | Atlanta Fed GDP tracker points to recession

FRI, JUL 01, 2022

EVENING BRIEF

AS OF FRI, JUL 01, 2022 • 04:54 ET

DJIA		31097.26
		+1.05%	+321.83

S&P 500		3825.33
		+1.06%	+39.95

NASDAQ		11127.85
		+0.90%	+99.11

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	138.93	+2.21	+1.62%
INTC	36.34	-1.07	-2.86%
CSCO	42.60	-0.04	-0.09%

S&P 500
NAME	LAST	CHG	%CHG
AMD	73.67	-2.80	-3.66%
AMZN	109.56	+3.35	+3.15%
AAPL	138.93	+2.21	+1.62%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	73.67	-2.80	-3.66%
AMZN	109.56	+3.35	+3.15%
AAPL	138.93	+2.21	+1.62%

EDITOR'S NOTE

Stocks rallied into the end of their first trading session of the second half of the year, after the S&P 500 closed out its worst first-half performance since 1970 the day before.

All of the major averages ended the day higher but still posted weekly declines. The Dow Jones Industrial Average finished the week down 1.2%. The S&P 500 lost 2.2% for the week, and the Nasdaq Composite dropped 4.1%.

Homebuilder stocks contributed to Friday's gains, with PulteGroup umping 6.5%, while Lennar and D.R. Horton rose more than 5% each. Etsy shares popped 9% to lead the S&P 500 higher. McDonald's led the Dow higher with a 2.5% gain. Coca-Cola and Boeing also rose more than 2%.

Stocks were lower for much of Friday's session following profit warnings from both Micron Technology and Kohl's. Kohl's shares ended down nearly 20%. General Motors, which officially stood by its current guidance, warned that manufacturing issues could lead to much lower-than-expected net income in the second quarter.

July kicks off the second half of the year with earnings season, which will be in full swing in the second week of the month. More negative earnings revisions, though, add to investors concerns around persistent inflation putting pressure on stocks.

"With two quarters of consecutive negative economic growth, a Federal Reserve seemingly intent on aggressive tightening regardless of the economic and market backdrop, and signals of a more marked slowdown, an earnings season that surprises to the upside rather than the expected downside, could help restore a semblance of stability in markets," said Quincy Krosby, chief equity strategist for LPL Financial.