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Dow Jones Industrial Average Bursts Higher as Buyers Step In

Stocks Stage 11th-Hour Reversal; Plus, Is Greece a Black Swan?

Jul 7, 2015 at 4:27 PM
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The Dow Jones Industrial Average (DJIA) spent almost the entire session in the red, with continued anxiety around Greece and China sending the blue-chip barometer down about 218 points at its session low. Specifically, Greece's apparent lack of effort and the Shanghai Composite's slump -- not to mention a drop in commodity prices -- had traders hitting the bricks en masse. This skepticism also took an early toll on the S&P 500 Index (SPX) and Nasdaq Composite (COMP), which were staring at significant losses for most of the day. A late-day burst of buying power helped all three indexes settle higher, though, with the SPX clawing its way back above its year-to-date breakeven mark by the close. Tomorrow could be a volatile one, too, with a number of Federal Reserve officials slated to speak and the Federal Open Market Commitee's (FOMC) June meeting minutes set for release.

 

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

 

 

The Dow Jones Industrial Average (DJIA - 17,776.91) tracked a nearly 328-point range today -- and explored both sides of breakeven -- before closing up 93.3 points, or 0.5%. Twenty-two of the DJIA's 30 components settled higher, led by 2.1% pops for The Coca-Cola Co (NYSE:KO) and Procter & Gamble Co (NYSE:PG). DuPont (NYSE:DD) paced the eight decliners with its 1.5% drop.

 

The S&P 500 Index (SPX - 2,081.34) breached its 200-day moving average for the first time since Oct. 20 in intraday action, but eventually settled with a 12.6-point, or 0.6%, gain. The Nasdaq Composite (COMP - 4,997.46) was off nearly 90 points at its intraday low, but climbed to a 5.5-point, or 0.1%, win -- stopping just short of the 5,000 mark.

 

The CBOE Volatility Index (VIX - 16.09) stopped squarely at the critical 19.20 mark in intraday action, before closing with a 0.9 point, or 5.4%, loss.

 

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5 Items on Our Radar Today:

 

  1. Following Thursday's lackluster payrolls report, the Labor Department's latest JOLTS data indicated the number of job openings hit a 14-year high of 5.4 million in May. Elsewhere on the economic front, the Commerce Department said the U.S. trade deficit grew $1.2 billion to $41.9 billion in May, amid a decline in exports and a strengthening dollar. (USA Today; Reuters)
  2. At today's meeting with German Chancellor Angela Merkel, French President Francois Hollande, and head of the European Commission Jean-Claude Juncker, Greek Prime Minister Alexis Tsipras reportedly requested interim financing for the debt-plagued country through the end of July. Earlier, Greece arrived at an emergency summit without any fresh proposals for a new deal. (MarketWatch)
  3. AMD fell more than 15% -- and hit a two-year low along the way -- after the firm's dismal outlook was met with bearish backlash from the brokerage bunch.
  4. 3 tumbling commodity names.
  5. Both Sunedison Inc (NYSE:SUNE) and Pinnacle Entertainment, Inc (NYSE:PNK) popped in the wake of their respective M&A news.

 

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Commodities:

 

Crude oil teetered near bear-market territory as anxiety over Greece, China, and Iran ramped up. However, liquid gold pared a significant portion of these losses in late trading, and, at the close, August-dated crude was down just 20 cents, or 0.4%, at $52.33 per barrel.

 

A strengthening dollar and concerns about China pressured gold futures today. By session's end, gold for August delivery was off $20.60, or 1.8%, at $1,152.60 per ounce -- its lowest close since mid-March. September-dated silver and copper, meanwhile, dropped to levels not seen since 2009.

 

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