Stocks retreated Monday for the third consecutive session, with airlines leading the way down.
The S&P 500 skidded 0.8%, while the Nasdaq lost 0.9%. The Dow Jones industrial average lopped off 0.7%. The Nasdaq closed below its 50-day moving average for the first time since May 23; the S&P 500 closed just above its 50-day line. The Dow closed below that support level.
The Russel 2000 fell 1.2%. Volume in the stock market today was higher on the Nasdaq but lower on the NYSE, early figures showed. Losers led winners by more than 3-to-1 on the NYSE and Nasdaq.
Airline stocks suffered, apparently on fear of traveling in the wake of the terrorist attack Sunday in Orlando, Fla. Hawaiian Holdings (HA) scored one of the bigger drops, a 6% dent. Delta Air Lines (DAL), the biggest airline stock by market cap, fell 3.5%. Although most airline stocks were down, volume was restrained. Hawaiian and Delta saw average volume.
Firearms stocks rose, apparently on the conviction that terrorist-inspired fears can spark demand for weapons. Sturm Ruger (RGR) and Smith & Wesson (SWHC) added 8.5% and 7%, respectively.
In the IBD 50, Facebook (FB) lost more than 2% and closed below its 50-day moving average. Short seller Citron Research criticized the social media company, saying it is losing relevancy.
Some interest rate-sensitive stocks fell also. Western Alliance Bancorp (WAL) fell 3% and closed below its 50-day moving average, 6% below its 37.58 buy point.
