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Dow Jones Industrial Average Loses the Day, Wins the Week

Did the Dow Doom Apple?

Jun 19, 2015 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) edged higher at the open, but quickly lost Thursday's fast-and-furious momentum. With little in the way of economic or earnings data to digest, traders once again turned their attention overseas, eyeing a steep sell-off in China and the latest chapter in Greece's fiscal drama. Specifically, the European Central Bank (ECB) threw Greek banks an emergency funding lifeline ahead of Monday's meeting of eurozone finance ministers -- as well as the country's June 30 debt-repayment deadline. This negative price action was seen elsewhere, with the S&P 500 Index (SPX) pulling back, and the Nasdaq Composite (COMP) retreating from yesterday's big milestone. Despite today's decline, all three major indexes ended comfortably higher on the week.

 

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

 

 

The Dow Jones Industrial Average (DJIA - 18,014.28) traded in a 107-point range today, with most of the day's action occurring to the downside. By the close, the blue-chip barometer was off 101.6 points, or 0.6%. Twenty-seven of the DJIA's 30 components closed lower, led by Travelers Companies Inc's (NYSE:TRV) 2% drop. Home Depot Inc (NYSE:HD), Nike Inc (NYSE:NKE), and Caterpillar Inc. (NYSE:CAT) managed to buck the bearish trend, with the former two adding 0.5%, and the latter tacking on 0.1%. For the week, the Dow added 0.6%.

 

It was a down day for both the S&P 500 Index (SPX - 2,109.76) -- which surrendered 11.5 points, or 0.5% -- and the Nasdaq Composite (COMP - 5,117.00), which gave back 16 points, or 0.3%. On a weekly basis, though, the SPX and COMP added a respective 0.7% and 1.3%.

 

The CBOE Volatility Index (VIX - 13.96) tacked on 0.8 point, or 5.8%, but found a stern level of resistance at the 14 mark. Week-over-week, the market's "fear gauge" rose 1.3%.

 

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5 Items on Our Radar Today:

 

  1. San Francisco Fed President John Williams and Cleveland Fed President Loretta Mester both support hiking interest rates in 2015. "I see a safer course in starting sooner and proceeding more gradually," said Williams at a speech in San Francisco. Meanwhile, in Pittsburgh, Mester cited a strengthening employment backdrop, a stabilizing dollar, and expectations for a rise in inflation as proof "the economy can withstand a small rate increase." (Bloomberg; Reuters)
  2. Republican presidential hopeful Donald Trump said he would possibly offer the job of Treasury Secretary to Carl Icahn, if elected to office next November. Unfortunately, it's not a job Icahn is looking for. "I am flattered but do not get up early enough in the morning to accept this opportunity." (Bloomberg)
  3. Zillow Group Inc (NASDAQ:Z) saw a rare surge higher today amid unconfirmed buyout rumors -- and option traders were quick to take notice.
  4. Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) and Netflix, Inc. (NASDAQ:NFLX) failed to capitalize on upbeat analyst notes.
  5. This chocolate giant melted following a dreary sales forecast.

 

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Commodities:

 

Crude oil closed lower today, amid concerns that Saudi Arabia will increase its output and anxiety over Greece's fiscal status. At the close, July-dated crude was off 84 cents, or 1.4% at $59.61 per barrel. For the week, crude shed 0.6%.

 

Gold futures edged lower on Friday, pressured by a strengthening dollar. By the close, gold for August delivery was off 10 cents at $1,201.90 per ounce. On a weekly basis, gold added 1.9%.

 

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