|Back to main|
Dow Outperforms in Choppy Trading Day
6/3/2013 4:21:00 PM
By: Schaeffer's Investment Research
"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."
The 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 ( INTC ) and Merck ( MRK ), 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%, respectively.
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. The 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.
After a notable gain 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 ( MRK ) 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 :
5 Stocks We Were Watching Today :
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.