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U.S. stocks retreat from record territory, as Fed hints of '15 rate hike

Published 05/22/2015, 04:28 PM
Updated 05/22/2015, 04:50 PM
The Dow, NASDAQ and S&P 500 all closed lower on Friday

Investing.com -- U.S. stocks fell slightly on Friday ending the week on a sour note, after Janet Yellen hinted that the Federal Reserve could raise interest rates at some point this year if the economy continues to show improvement.

The Dow Jones Industrial Average and the S&P 500 Composite index finished lower on the session after setting all-time closing records earlier in the week, while the NASDAQ Composite also closed down after spending most of the session in record territory. Bolstered by gains in the transportation and technology sectors, the NASDAQ appeared on pace to eclipse an all-time closing record from April 24, when it ended the session at 5,092.08. Instead, it closed at 5,089.36, down 1.43 or 0.03% following a late sell-off.

The Dow fell 53.72 or 0.29% to close at 18,232.02, finishing down for the week, while the S&P 500 lost 4.76 or 0.22% to 2,126.06, as nine of 10 sectors closed in the red. Stocks in the Telecommunications, Industrials and Consumer Goods sectors lagged, while stocks in the Technology sector led.

The CBOE Volatility Index, a key measure of the implied volatility of the S&P 500, fell to a yearly-low at 11.82 before ticking up to 12.16 at the close. The VIX index is down by more than 35% on the year.

The top performer on the Dow was Goldman Sachs Group Inc (NYSE:GS), which gained 2.85 or 1.39% to 207.80, capping a strong week for the Financials sector. The worst performer was Boeing Company (NYSE:BA), which fell 2.54 or 1.72% to 144.81. On Thursday, United Launch Alliance, a joint venture between Boeing and Lockheed Martin Corporation (NYSE:LMT) indicated that it could go bankrupt unless it receives additional commercial and satellite orders to compensate for an expected drop in U.S. military and spy launches.

The biggest gainer on the NASDAQ was NetApp Inc (NASDAQ:NTAP), which gained 4.31% to 33.14 to rebound from a poor session on Thursday after it reported worse than expected quarterly earnings. The worst performer, meanwhile, was Ross Stores Inc (NASDAQ:ROST), which fell 4.52 or 4.45% to 97.03, amid weak forward guidance in its quarterly earnings report.

The top performer on the S&P was Quest Diagnostics Incorporated (NYSE:DGX), which rose 5.72 or 7.74% to 79.60. Earlier on Friday, Quest Diagnostics soared nearly 20% after an options trader posted a rumor on Twitter (NYSE:TWTR) that the New Jersey-based clinical laboratory services corporation could be considering a merger. Shares in Quest Diagnostics fell back within minutes after trading was halted early in the session. Ross Stores also finished as the worst performer on the S&P, just behind Frontier Communications Corporation b (NASDAQ:FTR), which dropped 0.18 or 3.37% to 5.16.

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