The Nasdaq composite and small caps led losses in the stock market midday Friday as the index and S&P 500 were poised to end their weekly win streaks.
The Nasdaq was down 1% while the S&P 500 lost 0.6%. The small-cap Russell 2000 headed for a fifth consecutive drop with a 1% midday loss.
For the Nasdaq, an eight-week winning streak appears to be over. The S&P 500 is on pace to end a five-week win streak. Both are down more than 1% so far for this week.
The Dow Jones Industrial Average fell 0.5%. Dow component 3M reversed lower at midday. The company announced late Thursday it settled litigation over plastics pollution. 3M agreed to pay $10.3 billion to settle accusations that it contributed to harmful chemicals in drinking water.
Friday's stock market losses come after the Nasdaq and S&P 500 climbed Thursday in lower volume and poor breadth. Decliners topped advancers by an 8-5 ratio on the Nasdaq and by 2-to-1 on the NYSE.
Short-term support at the 10-day moving average for both indexes gave way Friday morning.
Volume Friday was tracking lower on the Nasdaq and higher on the NYSE compared with the same time on Thursday.
European stocks continued to fall after a gauge of activity in the manufacturing and services sectors fell to a five-month low. The data shows the eurozone economy is slowing as central banks continue to raise interest rates.
The German DAX slid 1%, the Paris CAC 40 fell 0.6% and the London FTSE 100 closed 0.5% lower.
In Asia, the Tokyo Nikkei fell 1.5% and the Hong Kong Hang Seng Index slid 1.7%. The Shanghai exchange was closed Friday. The three main Asian indexes lost 2.3% to 5.7% this week.
Stock Market Movers: Virgin Galactic, CarMax
Virgin Galactic sold off 20% in intense trading at midday. The civilian spaceflight company announced a secondary stock offering worth $400 million.
Friday's losses add to the stock's volatile profile in the past several days. Friday's rout surpassed the stock's previous worst day, an 18.9% sell-off on Jan. 13, 2022.
CarMax gapped up nearly 10% after the used-car dealership beat sales and profit expectations. The stock is extended after clearing the 73.57 buy point of a cup-with-handle base. CarMax is the S&P 500's best stock today.
Rival Carvana skidded 12%. The Wall Street Journal reported Thursday that Embedded Insurance has approached Carvana-backed auto insurer Root about a buyout. Root shares soared Wednesday and Thursday but fell Friday.
Apogee Enterprises gapped up to an 8.4% gain in heavy trading, nearing its highest levels of the year. The maker of glass, framing systems and other building products reported a 5% increase in earnings per share and a 1% sales increase for its May-ended quarter. Apogee also raised its outlook.
IBD 50 Lags Stock Market
The Innovator IBD 50 ETF was down 1.1% at midday.
IBD 50 stock Intra-Cellular Therapies fell 3% as it continued to back away from an attempted breakout at 66.56. And Symbotic is on pace for a third-straight drop of more than 5%.
Fluence Energy sold off more than 7% and has triggered a sell rule after falling 11% from its 26.78 buy point. Piper Sandler initiated coverage of the energy storage provider with a neutral rating and a 24 price target — below Thursday's close at 25.76.
Stock Market Gets More Economic Data
A broad reading of the U.S. services and manufacturing sectors signaled further expansion at the end of the second quarter, although the rate of growth slowed to a three-month low.
The June S&P Global Flash U.S. PMI Composite Output Index of 53.0 marked a fifth straight monthly increase in activity in the private sector. But after three months of growth, manufacturers saw contraction in production. Factory production fell at the fastest rate since January.
In a positive indication of inflation, U.S. companies raised their selling prices at the slowest pace since October 2020.
Overall, the rate of expansion of business activity remained robust in June, leaving second-quarter GPD growth around 2%, said Chris Williamson, chief business economist at S&P Global Market Intelligence.
