The Nasdaq and S&P 500 both settled above breakeven, too
Despite its attempt to stage a major bounce off last week's losses, the Dow erased this morning's triple-digit lead to settle only 16 points higher. Both the S&P 500 and Nasdaq also pared solid midday gains, but still managed managed to finish above breakeven. Today's volatile price action came as the 10-year Treasury yield surged above 3% -- its highest level in over one month -- and cast a shadow on easing Covid-19 restrictions in China, and U.S. President Joe Biden's plans to lift tariffs on solar panel products from certain countries. Meanwhile, the Cboe Volatility Index (VIX) registered a second-straight daily win.
Continue reading for more on today's market, including:
- Options bulls are favoring this chip stock.
- SM Energy stock could stage a big bounce.
- Plus, two S&P 500 newbies getting popular; analyst upgrades SPOT; and pharma stock pops on fresh drug data.
The Dow Jones Average (DJI - 32,915.78) added 16.1 points for the day. Travelers (TRV) rose 1.6%, leading the gainers. Amgen (AMGN), meanwhile, paced the laggards with a 1.2% drop.
The S&P 500 Index (SPX - 4,121.43) rose 12.9 points, or 0.3% for the day. Meanwhile, the Nasdaq Composite (IXIC - 12,061.37) gained 48.6 points, or 0.4% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 25.07) added 0.3 point, or 1.1% for the day.
5 Things to Know Today
- A federal New York judge signed a warrant on Monday authorizing the Department of Justice (DOJ) to seize two jets owned by Russian oligarch Roman Abramovich. (CNBC)
- Twitter (TWTR) sank after Tesla (TSLA) CEO Elon Musk said he may terminate the merger deal if he does not get information regarding fake accounts. (MarketWatch)
- These 2 new S&P 500 components are a hit with options traders.
- Why Raymond James upgraded Spotify stock to "outperform."
- Upbeat drug data pushed this pharmaceutical name higher.
There were no earnings reports of note today.
Oil Topples $120, Still Finishes Lower
Oil prices settled lower on Monday, but did briefly cross $120 at their session highs. Black gold was volatile after Saudi Arabia increased crude prices to Asia, northwest Europe, and the Mediterranean. The move comes after last week's decision from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to increase output. July-dated crude fell 37 cents, or 0.3%, to settle at $118.50 per barrel.
Gold prices were lower as well, despite the precious metal's earlier attempts to bounce back from its worst single-day percentage drop in three weeks. Weighing on the safe-haven commodity was the surging 10-year Treasury yield. August-dated gold shed 0.3%, or $6.50, to settle at $1,843.70 an ounce.