Dow Jones Industrial Average Sinks as Anxiety Builds

Dow Suffers Triple-Digit Drop; Plus, 2 Biotechs Bound for All-Time Highs?

by Karee Venema

Published on Jun 15, 2015 at 4:27 PM

The Dow Jones Industrial Average (DJIA) headed south out of the gate, pressured by a breakdown in debt talks between Greece and its creditors, as well as a sharp restructuring-related drop for one blue-chip aerospace giant. What's more, a pair of disappointing economic reports only stoked the bearish flames, and at its session low, the 30-stock index was off more than 200 points. The volatile price action could continue in the near term, as anxiety builds ahead of the Fed's impending policy decision, and in the lead-up to a critical meeting Thursday among Eurogroup leaders.

 

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

 

 

The Dow Jones Industrial Average (DJIA - 17,791.17) spent the entire session below breakeven -- down 200 points at its session low -- before settling with a 107.7-point, or 0.6%, loss. The index is now in the red year-to-date. Twenty-seven of the Dow's 30 components settled lower, led by United Technologies Corporation's (NYSE:UTX) 2.5% drop. UnitedHealth Group Inc. (NYSE:UNH) paced the three advancers with its 1.1% gain.

 

It was a similar set-up for the S&P 500 Index (SPX - 2,084.43), which closed down 9.7 points, or 0.5%. The Nasdaq Composite (COMP - 5,029.97) performed the best of its peers, shedding 21.1 points, or 0.4%.

 

The CBOE Volatility Index (VIX - 15.39) tacked on 1.6 points, or 11.7%, and settled north of its 120-day moving average for the first time since March 11.

 

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5 Items on Our Radar Today:

 

  1. Regarding Greece's fiscal woes, European Central Bank President Mario Draghi said a "strong and comprehensive agreement" is needed, and that "the ball lies squarely in the camp of the Greek government." Meanwhile, ahead of this Thursday's meeting among the European Union Commission and the International Monetary Fund, Greece said it is ready to begin negotiating "at any moment." (Bloomberg; The New York Times)
  2. The National Association of Home Builders said homebuilder sentiment soared to its loftiest level since September in June. This data was a silver lining on the economic front, following reports that showed an unexpected drop in industrial production, as well as New York State's manufacturing activity. (Reuters; USA Today; FOX Business)
  3. The Street was buzzing about CVS' newest acquisition, as well as reports that BABA is making plans to start a streaming video service in China.
  4. Option bears swarmed Facebook Inc (NASDAQ:FB), as overseas legal drama weighed on the stock.
  5. Zulily Inc (NASDAQ:ZU) call buyers bet on a bigger breakout.

 

 

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Commodities:

 

A stronger dollar and signs of peace talks between Yemen and Saudi Arabia sent crude oil lower today. By the close, crude for July delivery was down 44 cents, or 0.7%, at $59.52 per barrel.

 

Gold benefited from its safe-haven status today, as uncertainty surrounding Greece sent stocks reeling. At session's end, August-dated gold was up $6.60, or 0.6%, at $1,185.80 per ounce.

 


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