"The major market indexes were under heavy pressure early in the
day, as European worries once again reared their ugly head,"
explained Senior Equities Analyst Joe Bell. "There was a
resignation from a Greek official, more aid requests, and a
seemingly never-ending disagreement among European officials about
what to do next." And so, the
Dow Jones Industrial Average (DJI)
took a triple-digit tumble. As Bell pointed out, "Uncertainty leads
to fear and fear quickly leads to selling."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
- Did the
home construction sector
capitalize on today's
new homes report
- See how the
volatility indexes stacked up
during the last three months.
- Just how low can U.S. stocks bend on
The Dow Jones Industrial Average (DJI - 12,502.66)
experienced a more than 181-point swing today -- from a session
peak of 12,639.87 to a late-session bottom of 12,458.01 -- and
ultimately suffered a 138.1-point, or 1.1%, loss by the time the
dust settled. Twenty-nine of the 30 blue chips closed with
deficits, as Bank of America (BAC) and Hewlett-Packard (HPQ) paced
the underperforming issues with a 4.3% and 4.1% drop, respectively.
Wal-Mart (WMT) was the lone winner, turning in a 1.3% gain.
S&P 500 Index
(SPX - 1,313.72)
sawed off 21.3 points, or 1.6%, while the
Nasdaq Composite (COMP - 2,836.16)
sagged 56.3 points, or roughly 2% -- the worst performance of its
CBOE Market Volatility Index (VIX - 20.38)
soared 12.5% today, and tagged a session high of 21.36. This was
the highest daily close for the VIX in over a week.
: "Although most sectors finished in the red, the market was able
to regain a little footing as the day wore on," said Bell.
"Homebuilders got a bit of good news from this morning's
better-than-expected new home sales numbers, though the broad
market selling pressure dampened the sector's response."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures extended last week's decline today amid concerns of
lagging global demand and worries that this week's European Union
(EU) summit will do little to solve that region's economic strife.
Also, Tropical Storm Debby was forecasted to threaten oil rigs in
the Gulf of Mexico, but passed with no incident. As the dollar
strengthened, crude for August delivery slipped $0.55 cents, or
0.7%, to land at $79.21 a barrel.
Despite a decidedly down day on Wall Street, gold futures
notched their second straight win, luring bargain-hunting investors
back from the sidelines. Plus, the commodity's safe-haven appeal
grew more enticing as
Spain formerly applied for financial assistance
, Cyprus joined the ranks of European nations looking for a
bailout, and Germany raised questions as to how the euro zone will
disperse any further economic relief. By the close, August-dated
gold jumped $21.50, or 1.4%, to settle at $1,588.40 an ounce.
Levels to Watch in Trading
- Dow Jones Industrial Average (DJI - 12,502.66) - support at
11,500; resistance at 14,000
- S&P 500 Index (SPX - 1,313.72) - support at 1,100;
resistance at 1,500
- Nasdaq Composite (COMP - 2,836.16) - support at 2,400;
resistance at 3,400
For today's notable annual highs and lows,
At the end of every market day, the staff at Schaeffer's
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