Stocks Retreat from Records on Rate Cut Anxiety

Gold snapped its two-week win streak

Jul 5, 2019 at 4:38 PM
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The Dow was down more than 230 points at its session low after this morning's impressive payrolls report lessened expectations for a half-point rate cut at the Fed meeting in late July -- though markets are still pricing in near-unanimous projections for a 25 basis point cut. The blue-chip index pared these losses significantly by the close, as bank stocks rose on surging bond yields. The S&P and Nasdaq also eased back from Wednesday's record highs, though all three indexes notched impressive weekly gains.

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The Dow Jones Industrial Average (DJI - 26,922.12) spent the entire session in the red, eventually settling with a 43.9-point, or 0.2%, loss. 3M (MMM) led the 19 decliners with its 1.7% drop, while Goldman Sachs (GS) paced the 10 advancers with its 0.9% gain, while Walgreens Boots Alliance (WBA) was flat. For the week, the Dow added 1.2%.

The S&P 500 Index (SPX - 2,990.41) also spent the whole day in negative territory, closing down 5.4 points, or 0.2%. The Nasdaq Composite (IXIC - 8,161.79) briefly tiptoed into positive territory before settling 8.4 points, or 0.1%, lower. Week-over-week, the S&P rose 1.7%, while the Nasdaq surged 1.8%.

The Cboe Volatility Index (VIX - 13.28) gained 0.7 point, or 5.6%. On a weekly basis, the market's "fear gauge" plunged 11.9%.

Closing Indexes Summary July 5

NYSE and Nasdaq Stats July 5

5 Items on our Radar Today

  1. A filing released earlier indicated the Trump administration will move forward with its efforts to put a citizenship question on the 2020 U.S. census, saying, "the Departments of Commerce and Justice have been instructed to examine whether there is a path forward." Ahead of a mid-afternoon deadline set by a federal judge in Delaware, buzz had been swirling over a possible executive order to force the inclusion of the question. (CNBC)
  2. Samsung Electronics warned its second-quarter operating profit will be lower on a year-over-year (YOY) basis, which will mark the third consecutive quarter the South Korean chipmaker's profit declined YOY. Ahead of its late-July report, Samsung said operating profit for the three-month period fell 56%, while revenue dropped 4.2%. (Reuters)
  3. PepsiCo call traders set a short-term ceiling ahead of earnings.
  4. This red-hot drug stock is crushing short sellers.
  5. This video game stock fell to the bottom of the S&P today.

There are no earnings to report.

Unusual Options Activity July 5

Data courtesy of Trade-Alert

Gold Sinks as Dollar Strengthens

Oil prices gained amid rising geopolitical tensions with Iran, but upside was limited as the strong jobs report boosted the U.S. dollar. August-dated crude gained 17 cents, or 0.3%, to settle at $57.51 per barrel. Week-over-week, black gold shed 1.6%.

The strengthening greenback pressured gold prices. By the close, August-dated gold was down $20.80, or 1.5%, at $1,400.10 an ounce. For the week, the malleable metal gave back 1%, its first weekly drop in three weeks.


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