It was a mixed month for Wall Street, with a sharp tech pullback hitting the Nasdaq the hardest.
The S&P 500 closed with monthly gains of 0.33%, while the Dow Jones Industrial Average climbed more than 1%. The Nasdaq ended 0.9% lower, its first negative month since Oct. 2016.
The technology sector had a rough month, pulling back from lofty heights achieved during the first several months of the year. Tech names, particularly the FAANG stocks (Facebook Inc. (FB) , Amazon.com Inc. (AMZN) , Apple Inc. (AAPL) , Netflix Inc. (NFLX) and Alphabet Inc. (GOOGL) ), have been under pressure after a steep run-up year to date. The FAANG stocks had contributed a hefty portion to the S&P 500's gains in the period. The stocks comprising the acronym began their slide earlier on June 9.
The second quarter was all about tech, said Helene Meisler over on TheStreet's premium site for investors, Real Money. Get her insights with a free trial subscription.
A rally in Nike Inc. (NKE) shares boosted its peers and drove the Dow higher on Friday, June 30. Nike rose more than 8% on Friday after the athletic footwear and apparel giant reported earnings that topped Wall Street forecasts. The company also confirmed an agreement with Amazon.com Inc. (AMZN) to sell certain products on the e-commerce conglomerate's website.
Earnings in Nike's fiscal fourth quarter were 60 cents a share on revenue of $8.7 billion, beating estimates for earnings of 50 cents on revenue of $8.6 billion.
The cyclical consumer space was one of the best performers on Friday. Adidas AG (ADDYY) , Skechers USA Inc. (SKX) , Ralph Lauren Corp. (RL) and VF Corp. (VFC) were all higher, while the Consumer Discretionary SPDR ETF (XLY) increased 0.5%.
Crude oil prices added to gains Friday after weekly rig count data from Baker Hughes showed the first decline in activity in 24 weeks. The number of active U.S. rigs drilling for oil fell by two in the past week to 756 rigs. The number of active rigs has only dropped two times this year.
West Texas Intermediate crude was up 2.5% to $46.04 a barrel on Friday.
Personal incomes in the U.S. rose in May, according to the latest reading from the Bureau of Economic Analysis. Incomes rose by 0.4%, up 10 basis points from April's growth. Economists expected incomes to rise by 0.3%. Consumer spending increased 0.1%, while the savings rate climbed to 5.5% from 5.1%.
Manufacturing conditions in the Chicago region showed unexpected improvement in June. Chicago PMI rose to a reading of 65.7 in June, up from 59.4 in May. Economists expected a dip to 58.2. Any reading over 50 indicates expansion. Chicago PMI was at its highest level since 2014.
Consumer sentiment weakened slightly in June, according to the final reading from the University of Michigan. The overall index slipped to 95.1 from 97.1 in May, though beat estimates of 94.5. Consumer expectations dipped, while sentiment on current conditions strengthened.
Chipmaker Micron Technology Inc. (MU) fell despite posting better-than-expected earnings. Fiscal third-quarter adjusted earnings of $1.62 a share topped forecasts by 10 cents. Revenue in the quarter was $5.57 billion, up from $2.9 billion a year earlier and above analysts' estimates of $5.4 billion. Micron forecast better-than-expected profit and revenue for the fiscal fourth quarter.
Bank of America Corp. (BAC) was active after Warren Buffett's Berkshire Hathaway Inc. (BRK.B) announced plans to purchase 700 million shares. Berkshire will exercise its warrants, putting the price per stock at roughly $7.14 a share. The 700-million-share holding would make Berkshire the largest shareholder with a stake of 7% of shares outstanding.
Visit here for more of the latest business headlines.