Dow Jones Industrial Average (DJI)
was down nearly 250 points at its intraday nadir, but pared its
deficit to 140 points by the closing bell. "It was another volatile
day, as uncertainty about just exactly when the Fed will begin
tapering looms over this market," stated Schaeffer's Senior Equity
Analyst Joe Bell, CMT. "Treasury rates once again jumped, which has
suddenly become the norm during the month of June. China's stock
market also plummeted, which put a dark shadow over U.S. equities
as trading began."
Continue reading for more on today's market, including
Economic news from Dallas and Chicago, a big deal for Vodafone
), and increased bullish speculation on Herbalife Ltd. (
Dow Jones Industrial Average (DJI - 14,659.56)
was down nearly 250 points at one point in the session, but reduced
its loss to 140 points, or 0.9%, by the bell. As such, the
blue-chip barometer ended south of its 80-day moving average for
the third straight day. Among the Dow's 30 components, Johnson
& Johnson (JNJ) led the five gainers, tacking on 1.7%, while
Bank of America (BAC) paced the 25 decliners with a drop of
S&P 500 Index (SPX - 1,573.09)
also shaved its deficit by the close, ending 19.3 points, or 1.2%,
lower. At its intraday bottom, the SPX was down 32 points.
Nasdaq Composite (COMP - 3,320.76)
gave up 36.5 points, or 1.1%, after flirting with a 62-point loss
CBOE Market Volatility Index (VIX - 20.11)
rallied to its highest intraday point of the year, at 21.91, but
trimmed its lead to 1.2 points, or 6.4%, by the time the dust
settled. The market's "fear barometer" is on pace to end atop its
10-month and 20-month moving averages for the first time since
A Trader's Take
"The market actually finished well off its lows and received a
little bid, which was much better than we experienced late last
week," remarked Bell. "While most major sectors finished in the
red, high-yielding dividend stocks like utilities and real estate
investment trusts (REITs) outperformed."
3 Things to Know About Today's Market
- Stocks in China dropped significantly -- and
impacted other global markets
-- after the People's Bank of China stated that liquidity is
"overall at a reasonable level," signaling it would not be
loosening its monetary policy anytime soon. Meanwhile, Goldman
Sachs downwardly revised its economic outlook for China, citing
"record tightening of the interbank market." As a result, the
Shanghai Composite posted its worst single-day percentage drop in
- The Bank of International Settlements (BIS) advised central
banks around the globe to
tighten the loose monetary policy
-- such as historically low interest rates and other stimulus
efforts -- that has been instituted in recent years.
- The Federal Reserve Bank of Dallas reported a
business activity index
of 6.5 this month, up from negative 10.5 in May. Positive numbers
are indicative of expansion in the manufacturing sector.
national activity index edged up to negative 0.30 in May from
negative 0.52 in April.
5 Stocks We Were Watching Today
- In the wake of its big merger news,
Vodafone Group (
attracted back-month call sellers.
Herbalife Ltd. (
has seen increased call speculation over the past two weeks.
American International Group (AIG)
was targeted by front-month call buyers looking for a short-term
- BMO lifted its price target for
Apple Inc. (
, as the company introduced a new pay structure for its
Yahoo! Inc. (YHOO)
option bulls placed long-term bets using in-the-money
For a look at today's options movers and commodities
activity, head to page 2.
After spending the first half of the session in the red, oil
futures staged a comeback in afternoon trading. By the close,
August-dated crude added $1.49, or 1.6%, to end at $95.18 per
Gold selling continued today, due in part to rising concerns
about China's growth potential. The August-dated gold contract lost
$14.90, or 1.2%, to settle at $1,277.10 per ounce.