"Trading was mixed today, as home builders and consumer
discretionary issues performed poorly, while commodities and energy
led," summarized Schaeffer's Senior Equity Analyst Joe Bell, CMT,
of a session where the
Dow Jones Industrial Average (DJI)
fared the best of the broader-market indexes. "The ISM
Manufacturing Index fell more than expected -- showing its first
contraction since November 2012 and lowest reading since June 2009.
Various sectors had conflicting reactions to this news."
Continue reading for more on today's market, including
Auto sales zoom higher, Apple Inc. (
) makes waves in the music industry, and Research In Motion (
) option traders place big bets.
Dow Jones Industrial Average (DJI)
started in the green and continued to power higher throughout the
trading session, finishing the day just a chip-shot shy of its
intraday peak. By the close, the blue-chip index was up 138 points,
or 0.9%, at 15,254.03, but still below its 10-day moving average.
Today's rally was broad across the Dow, as 28 of 30 components
moved higher, led by Intel (
) and Merck (
), which respectively gained 4% and 3.8%. The two decliners were
Bank of America (BAC) and JPMorgan Chase (JPM), down 0.8% and 0.2%,
Gains were not as robust for the
S&P 500 Index (SPX)
, which added 9.7 points, or 0.6%, today, to settle at 1,640.42.
Nasdaq Composite (COMP)
was the laggard of the day, muscling 9.5 points, or 0.3%, higher,
to end the session at 3,465.37. Both the SPX and the COMP closed
near their intraday highs, but both remain below their respective
10-day moving averages.
on Friday, the
CBOE Market Volatility Index (VIX)
drifted fractionally lower today. The VIX gave back less than 0.1
point, or 0.1%, to settle at 16.28.
A Trader's Take
"The Dow's performance was the real bright spot today," added
Bell. "Since it's a price-weighted index, the extremely strong day
from Merck (
) bolstered the index well above its counterparts. The drugmaker
was higher following positive results in one of its trials."
3 Things to Know About Today's Market
- The Institute for Supply Management (ISM) reported that its
suffered a surprise pullback
to 49.0 last month -- the first reading south of 50 since
November. Elsewhere, the Commerce Department announced that
edged up 0.4% in April to a seasonally adjusted annual rate of
$860.8 billion. This also fell short of what economists had been
- Auto sales muscled higher in May, with
total light vehicle sales in the U.S.
rising 8% from the year-ago period to more than 1.4 million
vehicles. Ford Motor (F) said its sales jumped 14% during the
month (its best May on record since 2006), while General Motors
(GM) announced a 3.1% increase in sales on a year-over-year
(Los Angeles Times)
- In what seems like a preemptive move to launch a
streaming music service
, Apple Inc. (
) signed a deal with Warner Music Group for the rights to its
catalog. Apple's annual developers conference starts next Monday,
which could be the perfect time to unveil a new project.
(The Wall Street Journal, login required)
5 Stocks We Were Watching Today
- Research In Motion Ltd (
calls were in high demand today
ahead of the U.S. launch of the Q10 smartphone.
- Pandora Media Inc (P)
dropped almost 11% on the Apple streaming-music
, but one trader made a hopeful short-term bet.
- Conservative bullish traders
bought a bull call spread
in Ciena Corporation (CIEN) ahead of the company's earnings
- LinkedIn Corp (LNKD) was
given a new "outperform" rating
-- and a price target of $220 -- but still drifted into the
- Facebook Inc (FB) back-month puts were in focus today, as the
stock continued its recent slide
For a look at today's options movers and commodities
activity, head to page 2.
The U.S. dollar was pressured lower following
weaker-than-expected manufacturing data, and this helped send crude
oil to a higher finish. July-dated oil futures rose $1.48 today, or
1.6%, to settle at $93.45 per barrel. This move was not quite
enough to pare Friday's losses in the commodity.
Gold futures also gained ground, as investors grew less
concerned of a near-term end to the Federal Reserve's bond-buying
efforts. At the close, August gold was sitting $18.90, or 1.4%
higher, at $1,411.90 an ounce.
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