Dow Jones Industrial Average Muscles Higher, Nasdaq Tumbles

3 Stocks Ripe for a Short Squeeze

Jun 26, 2015 at 4:28 PM
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The Dow Jones Industrial Average (DJIA) spent the session higher, thanks to a stellar earnings showing from blue-chip Nike Inc (NYSE:NKE). However, upside momentum was limited as traders exercised caution ahead of another weekend huddle of eurozone finance ministers, with Greece's looming debt deadline on the horizon. Meanwhile, Micron Technology, Inc.'s (NASDAQ:MU) sell-off exacerbated pressure on the tech-heavy Nasdaq Composite (COMP), while the S&P 500 Index (SPX) essentially called the day a wash.

 

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

 

  • How big trouble in China impacted these 3 stocks.
  • What rising short interest levels could mean for this trio of equities going forward.
  • Option bulls were active as a bullish note -- not to mention M&A rumors -- lifted Monster Beverage Corp (NASDAQ:MNST).
  • Plus ... Consumers grow optimistic, another SCOTUS landmark, and another round of winning IPOs.

The Dow Jones Industrial Average (DJIA - 17,947.02) spent the session in the green -- and was up triple digits at its session high -- ending with a gain of 56.7 points, or 0.3%. NKE led the 19 advancing blue chips, gaining 4.3%, while Intel Corporation (NASDAQ:INTC) paced the 10 laggards with a 3% drop. American Express Company (NYSE:AXP) finished flat. For the week, the Dow lost 0.4%.

 

The S&P 500 Index (SPX - 2,101.61) finished a wishy-washy session with a fractional loss, also surrendering 0.4% on the week. The Nasdaq Composite (COMP - 5,080.51) fared the worst on the day and the week. The COMP gave up 31.7 points, or 0.6%, today, and 0.7% week-over-week.

 

The CBOE Volatility Index (VIX - 14.02) traded on both sides of breakeven today, but resolved to the upside -- albeit barely -- tacking on 0.1% to stay north of 14. For the week, the "fear gauge" added 0.4%.

 

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5 Items on Our Radar Today:

 

  1. The Thomson Reuters/University of Michigan consumer sentiment index registered at 96.1 in June -- a 16.5% year-over-year increase, and higher than expected. In fact, based on the survey, consumer confidence is at its highest level in five months. (Fortune)
  2. SCOTUS handed down another key ruling today, just after validating Obamacare. The Supreme Court voted 5-4 in favor of same-sex marriage -- boosting a handful of stocks(USA Today)
  3. In fact, the Obamacare ruling boosted healthcare stocks for a second straight day, including Tenet Healthcare Corp (NYSE:THC) and Community Health Systems (NYSE:CYH).
  4. The IPO party shows no signs of slowing down, after this pair of equities made strong debuts.
  5. The biotech that may have to liquidate assets.

 

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Commodities:

 

Crude oil was pressured lower on fears that a potential nuclear deal between Iran and the West -- ahead of next week's deadline -- could inundate global markets. By day's end, crude for August delivery was down 7 cents, or 0.1%, at $59.63 per barrel. On a weekly basis, liquid gold edged 2 cents higher, comparing most active contracts.

 

Gold snapped its five-day losing streak, as investors sought safe-haven investments amid the ongoing Greek debt crisis. The August-dated contract added $1.40, or 0.1%, to end at $1,173.20 per ounce. For the week, however, the malleable metal lost 2.4%.


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