Nasdaq Composite Index Pares Losses Amid Tech Sector Volatility

The Nasdaq Composite Index declined Thursday, but settled well off session lows as volatility returned to the technology sector.

The technology-driven index settled down 40.59 points, or 0.6%, to 6,382.19. It had declined by as much as 104 points earlier in the day.

On the most active list, 1,949 Nasdaq-listed stocks finished lower on Thursday, compared to 974 gainers. Fifty-two companies reported new lows, compared with 207 that registered new highs. A total of 228 stocks were unchanged for the day.

Facebook Inc. (NASDAQ: FB) rose 2.9% after reporting better than expected second-quarter earnings. The social networking giant earned $1.32 on revenue of $9.32 billion. Analysts had forecast EPS of $1.13 on sales of $9.2 billion.

Tech giants Apple Inc. (NASDAQ: AAPL) and Microsoft Corp (NASDAQ: MSFT) also finished lower.

Sirius XM Holdings (NASDAQ: SIRI) surged more than 8% after the company said its paid subscription base topped 32 million in the second quarter. Revenues climbed 9% on the quarter, while net income rose 16%.

Other gainers on Thursday included Intel Corp (NASDAQ: INTC) and PayPal Holdings Inc. (NASDAQ; PYPL), which rose 0.6% and 2.3%, respectively.

The Nasdaq Biotechnology Index declined sharply on Thursday, falling 1.9% to 3,346.58. Health stocks were down across the board, with biotech and healthcare technology companies shouldering the heaviest losses.

Large-caps pared losses in the latter half of the day, with the S&P 500 Index closing down 0.1% at 2,475.42. The Dow Jones Industrial Average powered to new highs, gaining 0.4% to close at 21,796.55.

In data news, U.S. durable goods orders surged 6.5% in June, while the goods trade deficit narrowed slightly to $64 billion.

The Commerce Department will issue preliminary second-quarter GDP figures on Friday.

Nasdaq Composite Index

nasdaq

Sam Bourgi is a financial market analyst for economiccalendar.com. He has more than six years of progressive experience in economic and financial analysis, research consulting and sectoral analysis. As a published author in government, peer-reviewed, online and industry sources, he has developed a fundamental approach to the financial markets with a broad focus on stock indices, commodities and the technology sector. He earned his Bachelor’s Degree from the University of Windsor and Master’s degree from McMaster University.