Stocks ended Friday' session showing no clear direction, as a lower than expected GDP growth rate was offset by better than expected readings on Chicago-area business activity and consumer sentiment for July. The major averages ended little changed after swinging between gains and losses over the course of the day.
The markets sold off at the opening bell after the Commerce Department reported that gross domestic product increased at an annual rate of 2.4 percent in the second quarter, short of average expectations for an increase of 2.5 percent. The second quarter number was also lower compared to the upwardly revised 3.7 percent jump seen in the first quarter.
Commenting on the data, Neil MacKinnon, global macro strategist at VTB Capital said, "Data revisions have altered the cyclical profile but don't change the story that the pace of recovery is now slowing,"
He added, "In the absence of fresh fiscal stimulus, which peaked in Q2, the outlook for the U.S. economy during the rest of the year points towards the risk of further economic drift."
Meanwhile, consumer sentiment data from Thomson Reuters and the University of Michigan helped to lift the markets off of their session lows after the early slump.
The report showed that the consumer sentiment index for July was upwardly revised to a reading of 67.8 from the preliminary estimate of 66.5. While the revised reading came in above economist estimates of 67.5, it remained well below the June reading of 76.0.
Data from the Institute for Supply Management - Chicago also helped stocks to recover, with the report showing the business barometer rising to 62.3 in July from 59.1 in June, with a reading above 50 indicating growth in Chicago-area business activity. The increase surprised economists, who had expected the index to fall to a reading of 56.3.
The major averages all saw choppy movement in late-day trading, ending on a mixed note. The Dow declined by 1.22 points or less than 0.1 percent to 10,465.94, the Nasdaq edged up by 3.01 points or 0.1 percent to 2,254.70 and the S&P 500 inched up 0.07 points or less than 0.1 percent to 1,101.60.
For the week, the Dow gained 0.4 percent, while the S&P 500 slid by 0.1 percent and the Nasdaq fell by 0.7 percent. On the month, the Dow surged up by 7.1 percent, while the S&P and Nasdaq both jumped by 6.9 percent.
Sector News
Telecom and semiconductor stocks closed notably lower on the day, with the NYSE Arca Telecommunications Index and the Philadelphia Semiconductor Index falling by 1 percent and 1.1 percent, respectively.
The telecommunications index extended its decline from Monday's nearly three-month closing high, while the semiconductor index pulled back further off of a five-week closing high also set at the outset of the week.
On the other hand, healthcare-related stocks saw some of the day's strongest gains. The Morgan Stanley Healthcare Payor Index advanced by 3.2 percent, with buying interest in the sector chiefly driven by Amerigroup's (AGP) strong second quarter earnings.
Gold, airline and biotechnology stocks also saw notable gains, further offsetting the downside in other market segments. The NYSE Arca Gold Bugs Index rose by 1.6 percent as August gold futures added $13.30 to end at $1,181.70 an ounce.
Dow Components
Intel (INTC) was the leading percentage decliner in the Dow, falling by 2 percent. The pullback dragged the stock further off of last week's seven-week closing high.
Merck (MRK) fell by 1.7 percent after missing second quarter revenue estimates and closed at a three-week low, while weakness was also visible among shares of Exxon Mobil (XOM), 3M (MMM) and Microsoft (MSFT).
Meanwhile, Home Depot (HD), Boeing (BA) and Alcoa (AA) all rose by at least 1.4 percent, helping to neutralize some of the aforementioned downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region ended lower to close out the week. Japan's benchmark Nikkei 225 inched fell by 1.6 percent, while Hong Kong's Hang Seng Index declined by 0.3 percent.
Meanwhile, the major European markets ended the day mixed. The U.K.'s FTSE 100 Index and the French CAC 40 Index fell by 1.1 percent and 0.2 percent, respectively, while the German DAX Index rose by 0.2 percent.
In the bond market, treasuries ended markedly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 2.907 percent, posting a loss of 9.2 basis points.
Looking Ahead
Next week, all eyes will be on the release of the July employment report on Friday, although data on national manufacturing, personal spending, and pending home sales may attract some attention in the days leading up to the jobs report.
In earnings, quarterly results from Procter & Gamble (PG), News Corp. (NWS), Kraft (KFT) and Humana (HUM) will be of note to the markets among many others.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.