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

2 Blue Chips for Contrarians

by Karee Venema

Published on Jun 16, 2015 at 4:21 PM

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:



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.







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.

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Google Postpones Android Reveal, "Now is Not the Time to Celebrate"
"Now is not the time to celebrate," Google said in a message on its website
ZNGA Zooms to 8-Year High on Billion-Dollar Deal
ZNGA is planning to buy Peak for $1.8 billion
Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....