* S&P 500 records longest streak of quarterly gains since
* GM announces vast expansion of recalls; stock falls
* Dow down 0.2 percent; S&P 500 off 0.04 pct; Nasdaq up 0.2
(Updates to close)
By Angela Moon
NEW YORK, June 30 The S&P 500 and the Nasdaq
Composite indexes wrapped up a sixth straight quarter of gains
on Monday, a streak not seen in more than 14 years.
The three major U.S. stock indexes, however, closed little
changed for the day, following a set of mixed economic data.
After the S&P 500's 30 percent gain last year, many
investors had expected a halt to an equity bull market that is
now in its fifth year.
But the Nasdaq has now recorded its longest streak of
quarterly gains since 2000. For the S&P 500, this is the best
run of quarterly gains since 1998. The Dow also marked its fifth
positive quarter of the last six.
"We are overextended in the short term, and I do see a bit
of a near-term correction, but the dips are seen as
opportunities to put cash to work," said Randy Frederick,
managing director of trading and derivatives at the Schwab
Center for Financial Research in Austin, Texas.
"I think the third quarter of the year will be very much
like what we just experienced, which is not that much of a move,
and I see volatility picking up from the last quarter of the
The S&P 500 set 22 record closing highs so far this year,
which has increased concerns among some investors that the
market might be due for a technical pullback. Yet the CBOE
Volatility Index, Wall Street's fear gauge, has held near
multi-year lows. The VIX ended on Monday at 11.57, up 2.8
A recent Reuters poll showed market participants expect the
benchmark S&P 500 to hit 2,000 for the first time before the
year ends. That milestone would mark a gain of about 8.2 percent
The Dow Jones industrial average fell 25.24 points or
0.15 percent, to 16,826.60. The S&P 500 dipped 0.73 of a
point, or 0.04 percent, to 1,960.23. The Nasdaq Composite
added 10.25 points or 0.23 percent, to 4,408.18.
For the second quarter, the Dow gained 2.2 percent, the S&P
500 rose 4.7 percent and the Nasdaq shot up 5 percent.
For the first half of the year, the Dow rose 1.5 percent
while the S&P 500 jumped 6.1 percent and the Nasdaq climbed 5.5
On Monday, the market barely reacted after data from the
Institute for Supply Management-Chicago showed the pace of
business activity in June in the U.S. Midwest dipped more than
expected from a seven-month high, and the National Association
of Realtors' pending home sales index showed contracts to buy
previously owned U.S. homes hit an eight-month high in May.
With a short week due to the Independence Day holiday on
Friday and a ream of data due on Wednesday and Thursday, there
may be increased volatility in a market that, some traders say,
has been placid.
General Motors Co shares fell 0.9 percent to $36.30
after the U.S. automaker expanded the list of older models it is
recalling for potentially deadly ignition switches.
Bank of New York Mellon shares rose 3.5 percent to
$37.48 after Trian Fund Management LP disclosed in an amended
regulatory filing it had acquired a stake of more than nine
million shares of the bank.
Shares of MannKind Corp surged 9.6 percent to
$10.96. The stock rallied following the U.S. Food and Drug
Administration's approval on Friday of Afrezza, the company's
inhaled insulin product, which is delivered via a whistle-sized
inhaler. The FDA said the company's product offered a new
treatment option for patients with diabetes.
About 5.7 billion shares changed hands on U.S. exchanges,
slightly below the 5.8 billion average for the month to date,
according to data from BATS Global Markets.
(Editing by Jan Paschal)