Dow Jones Industrial Average Swings Higher on Dovish Fed

What's In Store for Stocks in the Second Half of 2016?

Jul 6, 2016 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) started the day staring down another triple-digit deficit as "Brexit" anxiety continued to weigh, but strong data from the service sector helped the Dow change course by midday. Stocks also reacted to relatively dovish talk from one Fed official, which was echoed in the minutes from last month's Federal Open Market Committee (FOMC) meeting. The major indexes all treaded higher through the afternoon, with tech and healthcare stocks leading the way. A higher close for crude oil also helped give stocks a boost.

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

The Dow Jones Industrial Average (DJIA - 17,918.62) added 78 points, or 0.4%, for the day. Leading 23 of the Dow components higher was Merck & Co., Inc. (NYSE:MRK), with a 2% gain. Meanwhile, DuPont (NYSE:DD) shed 1.8% to pace the seven losers.

The S&P 500 Index (SPX - 2,099.73) climbed 11.2 points, or 0.5%, but ended just a hair shy of the round 2,100 level. The Nasdaq Composite (COMP - 4,859.16) gained 36.3 points, or 0.8%, as tech stocks enjoyed a strong session.

The CBOE Volatility Index (VIX – 14.96) gave up 0.6 point, or 4%.

Closing Indexes Summary July 6

NYSE and Nasdaq Stats July 6

5 Items on Our Radar Today: 

  1. The Federal Reserve released the minutes from its June FOMC meeting, which revealed a sense of unease ahead of the "Brexit" vote. Specifically, "Members generally agreed that, before assessing whether another step in removing monetary accommodation was warranted, it was prudent to wait for additional data on the consequences of the U.K. vote." The minutes also pointed to a slowdown in hiring as a key reason for leaving interest rates unchanged. (CNBC)
  2. McDonald's Corporation (NYSE:MCD) -- which has faced its own "Brexit"-related headwinds of late -- will expand its all-day breakfast offerings by putting its biscuit, McMuffin, and McGriddle sandwiches on all-day menus nationwide. So far, the company's decision to offer breakfast items all day has appeared to pay off, with shares of MCD hitting a new record high in early May. (MarketWatch)
  3. How one option bull bet big on a breakout for this climbing biotech stock.
  4. Why Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) options may be flashing a "buy" sign for bargain hunters.
  5. Option bears bet on lower lows for this battered bank stock.

Corporate Earnings July 6

Unusual Options Activity July 6

Data courtesy of
Trade-Alert

Commodities:

After spending much of the session in the red, crude oil managed a positive finish for the day, with crude for August delivery adding 83 cents, or 1.8%, to $47.43 per barrel. All eyes tomorrow will be on the regular weekly crude inventory report, delayed by a day due to Monday's holiday.

As revived "Brexit" anxiety shook traders throughout the morning, gold -- typically considered a safe-haven asset -- climbed to a new two-year intraday high. The commodity pared some of its gains before the close, however, with August-dated gold settling up $8.40, or 0.6%, at $1,367.10 an ounce.

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