Dow Jones Industrial Average Starts the Week On a Sour Note

2 Stocks Moving On Buyout Buzz

by Karee Venema

Published on May 11, 2015 at 4:24 PM
Updated on May 11, 2015 at 4:29 PM

The Dow Jones Industrial Average (DJIA) spent almost the entire session in the red, as a fresh stimulus move from overseas failed to lift investor sentiment here on the homefront. What's more, not even an analyst-induced pop for blue chip Caterpillar Inc. (NYSE:CAT) could save the Dow from profit-taking and a surge in bond yields. Looking ahead, traders will have the chance to digest the latest job openings data tomorrow morning, which comes in the wake of last Friday's well-received payrolls report.


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

 

 

The Dow Jones Industrial Average (DJIA - 18,105.17) peaked above breakeven in early trading, before eventually succumbing to an 85.9-point, or 0.5%, loss. Twenty-four of the DJIA's 30 components closed lower, led by a 1.7% drop for Exxon Mobil Corporation (NYSE:XOM). CAT paced the six advancers with its 0.7% gain.

 

It was a similar set-up for the S&P 500 Index (SPX - 2,105.33), which made a brief trip north out of the gate, before settling down 10.8 points, or 0.5%. The Nasdaq Composite (COMP - 4,993.57) fared the best of its peers, giving back 10 points, or 0.2% -- but losing its perch atop the 5,000 mark along the way.

 

The CBOE Volatility Index (VIX - 13.85) added 1 point, or 7.7%, and managed to muscle above its 10-day moving average.

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5 Items on Our Radar Today:

 

  1. Greece Finance Minister Yanis Varoufakis soothed the concerns of eurozone creditors today, by promising that the debt-stricken nation is prepared to make the proper allowances needed to receive the final installment of its aid package. Greece put in a transfer order to repay the International Monetary Fund 750 million euros today, according to Greek officials. (Bloomberg)
  2. Season 15 will be the last for American Idol, according to Fox. The show -- which will air its Season 14 finale this week -- originally aired in 2002, and hit its peak among viewers in 2006. (CNN Money)
  3. A bird-flu outbreak sent shares of Cal-Maine Foods Inc (NASDAQ:CALM) soaring -- and traders piling into the equity's options pits.
  4. Wall Street took decidedly different stances on Wall Street newcomers Godaddy Inc (NYSE:GDDY) and Etsy Inc (NASDAQ:ETSY).
  5. Is now a good time to buy volatility products? Schaeffer's contributor Adam Warner investigates.

 

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Commodities:

 

Crude oil took a modest breather today, after China cut interest rates, the Organization of Petroleum Exporting Countries (OPEC) predicted double-digit oil prices through the next decade, and amid reports of an increase in active drilling rigs in the Permian shale basin. At the close, crude for June delivery was down 14 cents, or 0.2%, at $59.25 per barrel.

 

A strengthening greenback pressured gold futures lower today, with June-dated gold settling down $5.90, or 0.5%, at $1,183 an ounce.

 


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