Dow Jones Industrial Average Hits Record High in Short Session; Nasdaq Sits Out the Rally

The Dow Jones Industrial Average (DJIA) surged to start the month and quarter, building to a record high amid solid performances from the energy and bank sectors. The S&P 500 Index (SPX) joined in on the fun, as traders eyed rising oil prices, upbeat manufacturing data, and the latest monthly auto sales. However, the Nasdaq Composite (COMP) sat out the rally during today's holiday-shortened session, as tech stocks underperformed.

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• Plus, high hopes for Alibaba; option pricing breakdown; and a great day for 2 auto stocks.

The Dow Jones Industrial Average (DJIA - 21,479.27) added 129.6 points, or 0.6%, notching an all-time high of 21,562.75 in intraday trading. Only 10 of the 30 Dow stocks finished lower, paced by Microsoft stock's 1.2% loss. Goldman Sachs was the top advancer, gaining 2.4%.

The S&P 500 Index (SPX - 2,429.01) added 5.6 points, or 0.2%. The Nasdaq Composite (COMP - 6,110.06) lost 30.4 points, or 0.5%.

The CBOE Volatility Index (VIX - 11.22) added 0.04 point, or  0.4%.

1. Microsoft is rumored to be prepping to lay off thousands of its employees around the globe, as reported by TechCrunch. Last week, the Puget Sound Business Journal said the tech titan will unveil a large reorganization effort on Wednesday, July 5. (CNBC)
2. The Institute for Supply Management (ISM) national index of factory activity rose to its highest level since August 2014 in May. However, the Commerce Department said U.S. construction spending remained unchanged, missing forecasts for a 0.3% rise. (Reuters)
3. Analysts predict a 43% rally for Alibaba stock.
4. A refresher on options pricing.
5. 2 auto stocks boosted by solid sales projections.

There were no earnings reports of note.


Data courtesy of Trade-Alert

Commodities

Oil prices are on pace for their eighth straight win, which would mark their longest streak in seven years. At last check, August-dated crude futures were up 75 cents or 1.6%, at $46.79 per barrel. 

Gold fell today to a seven-week low, as the U.S. dollar rebounded and the price for U.S. bond yields rose. August-dated gold futures were last seen down $20.40, or 1.6%, at $1,222 an ounce.