Dow Jones Industrial Average Nosedives Ahead of Payrolls

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:

 

• Casinos were in the spotlight today, as evidenced by the big moves in Las Vegas Sands Corp. (NYSE:LVS), Wynn Resorts, Limited (NASDAQ:WYNN), and MGM Resorts International (NYSE:MGM).
• With the euro soaring, Schaeffer's contributor Adam Warner highlighted 2 German exchange-traded funds (ETFs) to watch.
• Option bulls bought into BlackBerry Ltd's (NASDAQ:BBRY) buyout hype.
• Plus ... Jobs data continues to roll in, the IMF gives its two cents on the U.S. economy, and the latest round of M&A news hits the Street.

 

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:

 

1. 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)
2. 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)
3. T-Mobile US Inc (NYSE:TMUS) and Opko Health Inc. (NYSE:OPK) had volatile sessions in the wake of their M&A news.
4. Option traders just aren't buying MannKind Corporation's (NASDAQ:MNKD) rebound.
5. 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.

 

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