Major Averages Close In The Red, Nasdaq Underperforms

(RTTNews) - After failing to sustain an initial upward move, stocks moved back to the downside over the course of the trading day on Friday. The major averages all pulled back into negative territory, with the S&P 500 turning lower after reaching a record intraday high.

Biotechnology stocks showed a substantial move to the downside over the course of the trading day, dragging the NYSE Arca Biotechnology Index down by 3.9 percent. With the steep drop, the index ended the session at its lowest closing level in a month.

The weakness among biotech stocks was partly due to concerns about the outlook for drug prices amid news that lawmakers are asking Gilead Sciences (GILD) to justify the $84,000 price for its hepatitis C treatment Sovaldi.

Significant weakness also emerged among software stocks, which turned lower after seeing initial strength. The Dow Jones Software Index ended the day down by 1.7 percent after reaching a thirteen-year intraday high in early trading.

Airline, housing, and brokerage stocks also came under pressure on the day, while notable strength was visible among steel, tobacco, and oil service stocks.

While the major averages all ended the day in the red, the tech-heavy Nasdaq underperformed its counterparts. The Nasdaq tumbled 42.50 points or 1 percent to 4,276.79, while the Dow edged down 28.35 points or 0.2 percent to 16,302.70 and the S&P 500 dipped 5.61 points or 0.3 percent at 1,866.40.

Despite the losses on the day, the major averages all moved higher for the week. The Nasdaq advanced by 0.7 percent, and the Dow and the S&P 500 jumped by 1.5 percent and 1.4 percent, respectively.