U.S. stocks capped a volatile week with losses Friday, as Apple (AAPL) sank on an iPhone patent ruling, and Amazon (AMZN), Alphabet (GOOGL) and other big techs weighed on the Nasdaq.
The tech-heavy index slumped 0.9%, while the S&P 500 and Dow Jones industrial average eased 0.3% each. Volume swelled across the board vs. Thursday, due primarily to the expiration of futures and options contracts. All three indexes ended lower for the week and below their 10-week moving average lines. The Nasdaq shed 2%, while the Dow and S&P 500 each dipped 1%.
Drugmakers, biotechs and internet stocks lagged. Merck (MRK) was the biggest blue chip decliner, falling 3% in heavy trade. That effectively erased its gain from Thursday, when it released positive trial results from its Keytruda drug to treat lung cancer. Merck closed just above its 50-day moving average.
Big-cap internet stocks Alphabet, Amazon and Facebook (FB) gave up 3%, 2% and 1.3%, respectively.
Apple, down 2% in heavy volume, weighed on the key indexes. The stock has trended lower since hitting resistance June 6 at its 50-day line. It fell 3% for the week.
Oil stocks led the upside in the stock market today as West Texas Intermediate prices surged more than 4% to top $48 a barrel. Department store and hotel stocks also gained.
Inside the IBD 50, LGI Homes (LGIH) and Gigamon (GIMO) led the upside with gains of more than 3% each. LGI cleared a 29.42 buy point in busy trade, while Gigamon closed at its highest level in more than two years.
But Emergent Biosolutions (EBS) plunged 5%, slicing its 50-day line in roughly average turnover. The biotech's stock is now 5% below a 41.06 handle entry cleared in mid-May.
Which biotech stocks carry the best ratings? Find out at IBD Stock Checkup.
In economic news, May housing starts fell to an annualized rate of 1.164 million units from 1.172 million in April, but they still topped forecasts for 1.15 million. Building permits climbed to 1.138 million, slightly off views for 1.14 million.
Minneapolis Federal Reserve President Neel Kashkari is scheduled to speak Monday. All eyes will be on Thursday's Brexit referendum, when Britain votes on whether to withdraw from the European Union.
