Dow Jones Industrial Average Loses the Week, Despite Late-Day Surge

This Oil Stock Just Had Its Best Day Ever; Plus, A Big Cancer Breakthrough

May 6, 2016 at 4:27 PM
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Following an initial negative reaction to this morning's payrolls report, the Dow Jones Industrial Average (DJIA) climbed higher throughout the afternoon. Specifically, the disappointing jobs data -- which New York Fed President William Dudley called "a touch softer ... than what people were expecting" -- fueled speculation that the Federal Reserve will maintain its gradual pace toward raising interest rates. Additionally, stocks reacted as crude oil swung back into positive territory. Despite late gains, however, the Dow marked a second consecutive weekly loss.

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

The Dow Jones Industrial Average (DJIA - 17,740.63) added 79.9 points, or 0.5%. Wal-Mart Stores, Inc. (NYSE:WMT) was the biggest gainer, leading 24 of the Dow's 30 components higher on a 1.6% climb, while Merck & Co., Inc. (NYSE:MRK) led the laggards with a 0.9% drop. For the week, the DJIA shed 0.2%.

The S&P 500 Index (SPX - 2,057.14) climbed 6.5 points, or 0.3% -- after briefly dipping into negative year-to-date territory in intraday action -- but gave up 0.4% on a weekly basis. The Nasdaq Composite (COMP - 4,736.16), meanwhile, climbed back out of correction territory by day's end, settling up 19.1 points, or 0.4%. For the week, though, the COMP closed with a loss of 0.8%. 

The CBOE Volatility Index (VIX - 14.72) dropped 1.2 points, or 7.5% for the session, and gave back 6.2% for the week.

Indexes closing summary May 6



NYSE and NASDAQ stats May 6

5 Items on Our Radar Today:

  1. New York Fed President William Dudley said today that the he is not putting too much store into this morning's soft jobs report. Dudley echoed one of his fellow central bankers, saying two interest-rate hikes this year is still a "reasonable expectation." (MarketWatch)
  2. Despite saying on Thursday that he was "not ready" to give his support to presumptive Republican presidential nominee Donald Trump, House Speaker Paul Ryan has invited the candidate to meet with the party's leaders in the House of Representatives next week. Ryan also plans to meet privately with Trump and Reince Priebus, chairman of the Republican National Committee. (Reuters)
  3. How this gold ETF knocked options traders on their feet.
  4. Jack Dorsey's portfolio took a big hit after Square Inc's (NYSE:SQ) reported earnings.
  5. Bill Ackman might be sweating after Herbalife Ltd.'s (NYSE:HLF) latest earnings reaction.

Quarterly earnings May 6



Unusual Options Activity May 6

Data courtesy of
Trade-Alert

Commodities:

June crude oil climbed to $44.66 per barrel, up 34 cents, or 0.8%. This marks the third straight session of gains for oil, which benefited from a decrease in active rigs (as reported by Baker Hughes), a softening dollar, and supply disruptions in Canada and Nigeria. For the week, however, black gold gave up 2.7%, snapping its four-week run higher.

Gold clawed its way back after three straight sessions of declines, with the June-dated contract ending at $1,294.00 per ounce, up 1.7%, or $21.70. A dreary jobs report dimmed expectations for a June rate hike from the Fed, and subsequently lifted gold. For the week, the malleable metal gained 0.3%.

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