WALL STREET : Thrills and Spills Start Chills June

DJIA Drops 279 Points, VIX Skyrockets as Data Prompts Selldown
U.S. stocks swooned at the opening bell today, as investors jeered a hauntingly disappointing jobs report from ADP. Specifically, the payrolls processor said the private sector added fewer jobs than expected last month, which set an ominous stage for the end-of-week release of the government's highly anticipated nonfarm payrolls report. Later, the Institute for Supply Management (ISM) added salt to the Street's wounds, revealing that its manufacturing index suffered the worst monthly drop in nearly 27 years in May. As if that weren't enough, lackluster auto sales reports out of Detroit exacerbated concerns about the economic recovery, while Moody's downgrade of Greece's sovereign rating revived fears about the fiscal health across the pond. As the bearish stars seemed to align, the Dow Jones Industrial Average (DJIA) ended nearly 280 points in the red, while the CBOE Market Volatility Index (VIX) -- or the market's "fear barometer" -- found itself north of a closely watched trendline by the time the bell mercifully sounded.

The Dow Jones Industrial Average (DJIA – 12,290.14) steepened its slide as the session progressed, surrendering 279.7 points, or 2.2%, by the close. In the process, the blue-chip barometer took out multiple layers of round-number support, ending south of its 80-day moving average for the first time since March 17. In fact, not one of the Dow's 30 components emerged unscathed, with Alcoa (AA), Bank of America (BAC), and Caterpillar (CAT) all surrendering roughly 4.3% by the time the dust settled. Meanwhile, Coca-Cola (KO) suffered the least of its peers, surrendering just 0.1% on news of a potential Shanghai listing.

The S&P 500 Index (SPX – 1,314.55) also ended near an intraday nadir, giving up 30.7 points, or 2.3%. As a result, the SPX is in danger of ending the week beneath both its 10-week and 20-week trendlines for the first time since late August. Similarly, the Nasdaq Composite (COMP – 2,769.19) swallowed a loss of 66.1 points, or 2.3%, to settle near a session low. Like the SPX, the COMP is at risk of finishing the week south of its 10-week and 20-week trendlines for just the second time in more than nine months.

ANALYSTS' QUOTES
“What is most concerning here is the pace of the economic fall-off, and the risk is growing that the downside isn’t over.”"The markets are pricing in a weaker economy looking forward."

“This lower yield environment is going to hurt the banks, which in order to heal balance sheets have been rolling loans off their books, and making new loans at lower yields. The net interest margin for financials is really going to start feeling under pressure.”

The economic recovery "is sputtering a bit."

"Pressures from rising commodity costs, plus supply-chain disruptions from Japan's natural disaster, and extreme weather domestically, have combined to slow manufacturing's momentum. This is particularly worrying since manufacturing has been the economy's shining star."
 

Crude Futures Tumble On Demands Concern
Crude futures retreated from a three-week high today, as a batch of disappointing economic data fueled fears of ebbing demand. In addition, buyers stayed on the sidelines ahead of the government's holiday-delayed inventories report, which is slated to hit the Street at 11 a.m. Eastern tomorrow. What's more, black gold failed to benefit from a shuttered oil pipeline headed to Cushing, Okla., which remained closed for repairs today. Against this backdrop, July-dated crude oil futures gave up $2.41, or 2.4%, to settle at $100.29 per barrel.

HAPPY TRADING & GOODLUCK2ALL