Dow Tank Another 115 ptsSo much for a rebound. After ending last week with its third-worst day of the year, the Dow took another triple-digit hit and closed at fresh 2010 lows on Monday as risk aversion continued on Wall Street, slamming technology, industrial and financial stocks especially.
The Dow industrials slumping below the lows they hit during last month's "flash crash," as worries about the euro and global growth kept markets volatile.
Following Friday's payrolls-related plunge, stocks spent time on both sides of the breakeven line today. With the economic calendar relatively barren, traders took their cues from the currency markets, where the euro continued to backpedal against the dollar.
Bank of America weighed on the blue chips after the company's Countrywide Financial unit agreed to shell out $108 million to settle regulatory charges. But the day's downbeat mood was perhaps best summed up by the action in Apple Inc. Despite the official debut of the latest iteration of its popular iPhone, shares of the Cupertino, Calif.-based company jogged into the black only briefly before succumbing to a Street-wide case of the Mondays.
The Dow Jones Industrial Average (DJIA – 9,816.49) continued to back away from the psychologically significant 10,000 level, with the blue-chip barometer swallowing a steep loss of 115.5 points, or 1.2%. Only five of the Dow's 30 components closed higher: Chevron, McDonald's, Merck, AT&T, and Wal-Mart Stores. Meanwhile, Bank of America and Caterpillar suffered the sharpest declines. The Dow is now testing support in the 9,800 neighborhood, which contained its lows in early February.
The S&P 500 Index (SPX – 1,050.47) endured a comparable drop of 14.4 points, or 1.4%. Right before the closing bell rang, the SPX found a foothold at the 1,050 level, which provided a floor for the index earlier this year.
The Dow Jones Industrial Average (DJIA – 9,816.49) continued to back away from the psychologically significant 10,000 level, with the blue-chip barometer swallowing a steep loss of 115.5 points, or 1.2%. Only five of the Dow's 30 components closed higher: Chevron, McDonald's, Merck, AT&T, and Wal-Mart Stores. Meanwhile, Bank of America and Caterpillar suffered the sharpest declines. The Dow is now testing support in the 9,800 neighborhood, which contained its lows in early February.The S&P 500 Index (SPX – 1,050.47) endured a comparable drop of 14.4 points, or 1.4%. Right before the closing bell rang, the SPX found a foothold at the 1,050 level, which provided a floor for the index earlier this year.
Finally, the Nasdaq Composite (COMP – 2,173.90) gave up more than 45 points, or 2%, outpacing the losses suffered by its peers. The next potential area of support for the COMP is the 2,150 neighborhood, which contained the tech-rich index's late-May low.
CRUDE EDGE LOWER
Crude futures ended modestly lower today, with many analysts observing that robust oil and gas stockpiles should provide a buffer against any storm-related disruptions. Additionally, a generally bearish mood in the equities market bled over to the commodity pits, with traders turning up their noses at higher-risk assets. By the close, crude oil for July delivery shed 7 cents, or 0.1%, to settle at $71.44 per barrel.
CRUDE EDGE LOWERCrude futures ended modestly lower today, with many analysts observing that robust oil and gas stockpiles should provide a buffer against any storm-related disruptions. Additionally, a generally bearish mood in the equities market bled over to the commodity pits, with traders turning up their noses at higher-risk assets. By the close, crude oil for July delivery shed 7 cents, or 0.1%, to settle at $71.44 per barrel.
GOLD HIGHER AS RISKS ESCALATEOn the other hand, gold futures benefited from the market's rising risk aversion. The precious metal capitalized on its status as a safe-haven alternative to stocks, particularly with the U.S. dollar gaining ground against the euro. The August-dated contract ended the day solidly higher, adding $23.20, or 1.9%, to finish at $1,240.80 per ounce.
CAVEAT EMPTOR
Buyers Beware !!!
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