Dow Jones Industrial Average Starts June In the Black

The 'Sweet Spot' for Yield Spreads; Plus, 2 Stocks Sitting Out the Rally

Jun 1, 2015 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) spent time on both sides of breakeven -- and the 18,000 level -- today, trading in a 124-point range that eventually resolved to the upside. Helping boost the blue-chip barometer was a strong batch of manufacturing data both at home and overseas, as well as some signs of hesitation among a pair of Fed officials over a June rate hike. This bullish backdrop spread to other corners of the Street, as well, with the S&P 500 Index (SPX) kicking June off on a strong note, and the Nasdaq Composite (COMP) adding to May's big gains -- and extending its lead over the highly watched 5,000 mark.

 

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

 

 

The Dow Jones Industrial Average (DJIA - 18,040.37) was down 29 points at its session low and up 95 points at its intraday peak, before eventually settling with a 30-point, or 0.2%, gain. Sixteen of the Dow's 30 components moved higher, led by DuPont's (NYSE:DD) 0.9% advance. Intel Corporation (NASDAQ:INTC) paced the 14 decliners with its 1.6% drop.

 

The S&P 500 Index (SPX - 2,111.73) also explored both sides of the flatline, before closing up 4.3 points, or 0.2%.  The Nasdaq Composite (COMP - 5,082.93) fared the best of its peers, tacking on 12.9 points, or 0.3%.

 

The CBOE Volatility Index (VIX - 13.97) tacked on 0.1 point, or 0.9%, but once again encountered double-barreled resistance at the 14 mark and its 80-day moving average.

 

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5 Items on Our Radar Today:

 

  1. It's a busy week on the data front, and today, traders digested updates on consumer spending and inflation -- both of which unexpectedly arrived flat. Meanwhile, the Institute for Supply Management's manufacturing index arrived above economists' estimate, while construction spending jumped to levels not seen since November 2008. (CNBC; USA Today; MarketWatch)
  2. A number of top-ranking eurozone officials, including International Monetary Fund (IMF) head Christine Lagarde, German Chancellor Angela Merkel, French President Francois Hollande, and European Commission President Jean-Claude Juncker, are reportedly meeting to discuss ways to stop Greece from defaulting and maintain its place as a member of the eurozone. The debt-strapped nation is expected to pony up $329 million to the IMF on Friday -- its first of four payments this month. (Bloomberg)
  3. INTC agreed to pay $16.7 billion to purchase Altera Corporation (NASDAQ:ALTR) -- news that wasn't well-received in the options pits -- continuing a recent string of big M&A news in the semiconductor sphere.
  4. GoPro Inc (NASDAQ:GPRO) popped after unveiling its latest device, but option traders think there's more room to run.
  5. Call buyers continue to bet on more upside for FireEye Inc (NASDAQ:FEYE), which apparently can't be stopped.

 

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Commodities:

 

Crude oil slipped today, amid reports that showed strong May production for the Organization of the Petroleum Exporting Countries (OPEC) -- which will meet on Friday. At session's end, crude for July delivery was down 10 cents, or 0.2%, at $60.20 per barrel.

 

A strengthening dollar applied pressure to gold futures today. By the close, August-dated gold was off $1.10 at $1,188.70 per ounce.

 

 

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