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As stocks reached new heights, crude and gold retreated
After an unimpressive start to the session, the Dow Jones Industrial Average (INDEXDJX:DJI) surged higher in the second half of the day, after news broke that Greece secured a four-month bailout extension with its eurozone creditors -- keeping the money-burdened country financed in the near term. The agreement propelled the Dow and the S&P 500 Index (SPX) to all-time bests, while the Nasdaq Composite (COMP) hit another 15-year high, extending its winning streak to eight sessions. There was also some promising developments on the home front, with Markit's flash manufacturing purchasing managers index (PMI) seeing its largest increase since November.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 18,140.44) struggled early on, but got a lift from the news across the pond, adding 154.7 points, or 0.9%, after hitting an all-time high of 18,144.29 earlier in the day. Of the Dow's 30 components, 24 finished higher, with BA gaining the most, up 3%. Procter & Gamble Co (NYSE:PG) paced the five losers, dropping 0.4%, while McDonald's Corporation (NYSE:MCD) finished flat. On the week, the Dow added 0.7%.
The S&P 500 Index (SPX - 2,110.30) settled near its fresh all-time high of 2,110.61, advancing12.9 points, or 0.6%, while the Nasdaq Composite (COMP - 4,955.97) also surged, adding 31.3 points, or 0.6%, after hitting another 15-year high of 4,957.02. Week-over-week, the SPX added 0.6%, and the COMP gained 1.3%.
The CBOE Volatility Index (VIX - 14.30) dropped 1 point, or 6.5%, to end beneath its 200-day moving average for the first time since early December. The "fear gauge" was 2.7% lower on the week.
5 Items on Our Radar Today:
- Eurozone finance ministers reached an agreement today to extend financial support to Greece for four months. The agreement allows Greece to stay part of the eurozone and prevents it from running out of money next month. (Reuters)
- U.S. manufacturing grew at the fastest pace since November in February, according to Markit's flash PMI. The reading rose to 54.3 from an annual low of 53.9 in January. (Reuters, via CNBC)
- Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) options were a popular item amid fresh buyout buzz.
- CNBC was responsible for two different stocks' jumps.
- The proxy fight -- and subsequent analyst note -- that put this drugmaker in the spotlight.
For a look at today's options movers and commodities activity, head to page 2.
Commodities:
Oil dropped once again, amid escalating concerns about higher supplies in the U.S. At the close, oil for April delivery was off $1.02, 2%, to close at $50.81 per barrel. For the week, liquid gold was off 3.7%, comparing most active contracts. Elsewhere, March natural gas surged 5.2% week-over-week, amid freezing temperatures and refinery disruptions in the U.S.
Gold dropped as reports of a Greece bailout extension lessened the collective appetite for "safe haven" investments. April-dated gold lost $2.70, or 0.2%, to close at $1,204.90 an ounce. On a weekly basis, the yellow metal lost 1.8%.