The DJIA surrendered its perch atop 18,000, while crude oil plunged ahead of tomorrow's OPEC meeting
The
Dow Jones Industrial Average (DJIA) peaked above breakeven in early action, after the International Monetary Fund (IMF)
encouraged a dovish stance by the Fed, but spent most of the day in the red. These losses began to intensify in mid-morning action, as traders eyed soaring bond yields, and as disappointing productivity data overshadowed a drop in jobless claims ahead of
tomorrow's highly anticipated payrolls report. By the close, the 30-stock index was staring at a triple-digit decline -- and
sitting south of the 18,000 mark -- and had joined the
S&P 500 Index (SPX) in a trip below their respective 50-day moving averages. Meanwhile, traders also digested the latest chapter in Greece's debt drama, with the country telling the IMF it will combine its four June payments -- the first of which was due tomorrow -- into one lump sum, to be paid on Tuesday, June 30.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJIA - 17,905.58) traded in a 210-point range today, with most of the activity occurring to the downside. By the close, the 30-stock index was off 170.7 points, or 0.9% -- and well below the 18,000 mark. DuPont's (NYSE:DD) 2.2% drop led 29 blue chips south, while Goldman Sachs Group Inc (NYSE:GS) was the sole advancer with its 0.3% gain.
The S&P 500 Index (SPX - 2,095.84) edged above the flatline in early trading, before eventually settling with an 18.2-point, or 0.9%, loss -- and closing south of the 2,100 mark for the first time since May 13. The Nasdaq Composite (COMP - 5,059.13) fared the best of its peers, surrendering 40.1 points, or 0.8%.
The CBOE Volatility Index (VIX - 14.71) popped 1.1 points, or 7.7%, to secure a second close north of its 80-day moving average this week, and its highest finish since May 7.
5 Items on Our Radar Today:
- Weekly jobless claims fell to 276,000 last week -- slightly better than economists' estimate. However, first-quarter productivity was revised to a show a 3.1% drop, versus the previous 1.9% decline. (CNBC; MarketWatch)
- At a press briefing in Washington today, IMF Managing Director Christine Lagarde warned the Federal Reserve against raising interest rates before 2016. "The inflation rate is not progressing at a rate that would warrant, without risk, a rate hike in the next few months." Additionally, the lender cut its U.S. growth forecast to 2.5%, citing a "moderately overvalued" dollar. (Bloomberg)
- T-Mobile US Inc (NYSE:TMUS) and Opko Health Inc. (NYSE:OPK) had volatile sessions in the wake of their M&A news.
- Option traders just aren't buying MannKind Corporation's (NASDAQ:MNKD) rebound.
- Weekly option traders have been active on American Airlines Group Inc (NASDAQ:AAL) and Bank of America Corp (NYSE:BAC), but in surprisingly different ways.
Commodities:
Crude oil sold off sharply, as caution set in ahead of tomorrow's Organization of the Petroleum Exporting Countries (OPEC) meeting. By the close, July-dated crude was down $1.64, or 2.8%, at $58 per barrel.
Despite a cooling dollar and a down day for stocks, gold futures fell today, after weekly jobless claims came in slightly above expectations -- strengthening the Fed's case for raising interest rates sooner rather than later. At session's end, gold for August delivery was off $9.70, or 0.8%, at $1,175.20 per ounce -- a five-week low.