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U.S. Stocks Follow China Lower; Dow Swallows 140-Point Loss
6/24/2013 4:20:00 PM
By: Schaeffer's Investment Research
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."
The 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 3.1%.
The 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. Meanwhile, the Nasdaq Composite (COMP - 3,320.76) gave up 36.5 points, or 1.1%, after flirting with a 62-point loss around midday.
The 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 November 2011.
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 :
5 Stocks We Were Watching Today :
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 barrel.
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.