Dow Jones Industrial Average Bounces as Bulls Buy In Ahead of Fed

The Dow Jones Industrial Average (DJIA) tracked another triple-digit range today. Despite signaling a slow start, most of the day's action occurred to the upside, as speculators bought in ahead of tomorrow's highly anticipated policy decision from the Federal Reserve. However, Wall Street kept one eye trained overseas, as the drama surrounding Greece's fiscal status intensified. Specifically, Greek Prime Minister Alexis Tsipras chastised eurozone officials for their treatment of the country, but expressed optimism that "real negotiations are starting now." Looking ahead, Eurogroup leaders are slated to meet on Thursday to discuss Greece's financial future.

 

Continue reading for more on today's market, including:

 

• Why contrarians should keep a close eye on these 2 Dow components.
• Are we in a Panic Cycle? Schaeffer's contributor Adam Warner explains.
• Eagle Pharmaceuticals Inc (NASDAQ:EGRX) and its sector peer took decidedly different routes today after Wall Street weighed in.
• Plus ... Housing data paints a mixed picture, The Donald hopes to get hired, and why put players may be targeting these 2 outperforming drugmakers.

 

Despite a brief foray south of breakeven at the open, the Dow Jones Industrial Average (DJIA - 17,904.48) spent nearly the entire session in the green -- and eventually settled with a 113.3-point, or 0.6%, gain. Twenty-eight of the Dow's 30 components closed higher, led by UnitedHealth Group Inc.'s (NYSE:UNH) 2.2% pop. Caterpillar Inc. (NYSE:CAT) was the lone decliner with its 0.6% loss, while Pfizer Inc. (NYSE:PFE) finished flat.

 

The S&P 500 Index (SPX - 2,096.29) added 11.9 points, or 0.6%, but was halted near the overhead 2,100 mark. The Nasdaq Composite (COMP - 5,055.55), meanwhile, followed its peers higher, tacking on 25.6 points, or 0.5%.

 

The CBOE Volatility Index (VIX - 14.81) retreated back below its 120-day moving average, closing down 0.6 point, or 3.8%.

 

 

Sign up now to get Schaeffer's Opening View delivered straight to your inbox!

 

5 Items on Our Radar Today:

 

1. In the wake of Monday's upbeat reading on homebuilder sentiment, the Commerce Department said housing starts fell 11.1% in May to a seasonally adjusted 1.04 million units. Building permits, however, jumped 11.8% to a rate of 1.28 million units -- its loftiest perch in nearly eight years. (CNBC)
2. Joining a cast of Republican candidates that includes former Hewlett-Packard Company (NYSE:HPQ) CEO Carly Fiorina and White House legacy Jeb Bush, Donald Trump threw his hat into the presidential ring today. Speaking at Trump Tower in New York, Trump said he is "really rich," and "will be the greatest jobs president that God ever created." (CNN)
3. Both Gilead Sciences, Inc. (NASDAQ:GILD) and MannKind Corporation (NASDAQ:MNKD) have been targeted by put buyers recently, but their motives may be more protective in nature.
4. 3 low-priced stocks with upside potential.
5. This cosmetics maker surged following reports of a $12 billion acquisition, while Netflix, Inc. (NASDAQ:NFLX) resumed its uptrend thanks to a bullish brokerage note.

 

 

Commodities:

 

Crude oil edged higher today, on reports a tropical storm was making its way toward Texas. At the close, July-dated crude was up 45 cents, or 0.8%, at $59.97 per barrel.

 

Despite uncertainty ahead of tomorrow's outcome from the Federal Open Market Committee (FOMC) meeting -- and amid a strengthening dollar -- gold edged lower today. By session's end, gold for August delivery was off $4.90, or 0.4%, at $1,180.90 per ounce.