Dow Jones Industrial Average Dips with Rate-Hike Expectations

The Dow Jones Industrial Average (DJIA) dropped sharply out of the gate, after the highly anticipated nonfarm payrolls report fell far short of economists' expectations. While the Dow trimmed its losses by the close, the disappointing jobs data dimmed expectations for a June rate hike from the Fed, and banking stocks backpedaled on the news. Against this backdrop, investors are anxiously awaiting Monday's speech from Fed Chair Janet Yellen for further insight into what the future may hold.

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

• Red-hot gold had options traders circling these 3 commodity names, as well as this gold stock that's practically doubled in 2016.
• This airline was flying high on rumors of a bidding war, while an American Airlines Group Inc (NASDAQ:AAL) deal has one tech stock bracing for a rough landing.
• Why these 2 coffee stocks had Wall Street buzzing.
• Plus... The Fed member who wants the central bank to cool its jets, a $3 billion tech buyout, and a post-Zuckerberg Facebook?

The Dow Jones Industrial Average (DJIA - 17,807.06) finished the day with a loss of 31.5 points, of 0.2%, clawing its way back from triple-digit losses intraday. Caterpillar Inc. (NYSE:CAT) finished up 1.9%, leading the 14 Dow winners. Goldman Sachs Group Inc (NYSE:GS) shed 2.3%, bringing up the rear of the 16 Dow losers. For the week, the Dow fell 0.4%.

The S&P 500 Index (SPX - 2,099.13) ended the day down 6.1 points, or 0.3%, and just under the key 2,100 level. The Nasdaq Composite (COMP - 4,942.51) lost 28.5 points, or 0.6%, breaking its seven-day winning streak. For the week, the SPX was relatively flat, while the COMP added 0.2%.

The CBOE Volatility Index (VIX – 13.47) lost 0.1 point, or 1.2%, for its lowest finish since April. Since last Friday, the VIX added 2.7%.

5 Items on Our Radar Today: 

1. Fed Governor Lael Brainard said that in light of recent data and "important near-term uncertainty" -- including the upcoming "Brexit" vote -- "there would appear to be an advantage to waiting until developments provide greater confidence" before hiking interest rates. (MarketWatch)
2. Could Zuckerberg lose control of Facebook Inc (NASDAQ:FB)? Board members will vote on a post-Zuckerberg contingency plan later this month. (CNET)

3. Can this retailer close its bear gap (hint hint)?

4. A $3 billion buyout in the tech industry.

5. Bank stocks bore the brunt of falling Fed hopes.

 

Data courtesy of

Commodities:

July-dated oil closed down 55 cents, or 1.1%, to finish the day at $48.62 per barrel. The second increase this year in the number of active rigs, per the Baker Hughes weekly rig count, weighed heavily on oil prices, as did concerns about the labor market. For the week, black gold dropped 1.4%.

August-dated gold (the most active contract) exploded out of the gate and didn't look back, ending the day up $30.30, or 2.5%, at $1,240.10 an ounce -- its best day in 11 weeks -- after a downbeat jobs report seemed to suggest the Fed would hold off on an interest rate hike -- for now. For the week, gold advanced 2.2%.