Major Averages Close Lower For Fourth Straight Session

(RTTNews) - Extending the downward trend seen over the past few sessions, stocks moved sharply lower during trading on Friday. With the drop on the day, the Dow pulled back toward the five-month lows set earlier this month.

Biotechnology stocks showed a significant move to the downside on the day, dragging the NYSE Arca Biotechnology Index down by 3.5 percent. The index closed lower for the fifth straight day, pulling back further off the record closing high set last Friday.

Biogen (BIIB) helped to lead the biotech sector lower, plunging by 22.1 percent after reporting weaker than expected second quarter revenues and cutting its full-year guidance.

Reflecting concerns about the outlook for Chinese demand, steel stocks also saw substantial weakness. The NYSE Arca Steel Index tumbled by 3 percent to its lowest closing level in over six years.

Energy stocks also came under pressure amid a continued decrease by the price of crude oil. Reflecting the weakness in the energy sector, the NYSE Arca Natural Gas Index and the Philadelphia Oil Service Index fell by 2.7 percent and 2.9 percent, respectively.

Airline, healthcare, chemical, and housing stocks also saw considerable weakness on the day, while gold stocks rallied despite a continued decrease by the price of the precious metal.

The major averages moved roughly sideways going into the close, stuck firmly in negative territory. The Dow fell 163.39 points or 0.9 percent to 17,568.53, the Nasdaq tumbled 57.78 point or 1.1 percent to 5,088.63 and the S&P 500 slumped 22.50 points or 1.1 percent to 2,079.65.

With the steep losses on the day, the major averages moved substantially lower for the week. The Dow plummeted by 2.9 percent, while the Nasdaq and the S&P 500 plunged by 2.3 percent and 2.2 percent, respectively.