Monday, May 17, 2010 SUMMARY:
Once more lingering concerns about European debt continued to negatively affect the markets accompanied by the euro’s four-year low versus the greenback, which weighed on dollar-denominated commodities like crude oil. Also disappointing manufacturing data added fuel to the bearish fire. However, in spite of these bearish factors the bulls staged a late session rally and all three major market indexes closed with very small gains.
After giving up 180 points at its intraday low, the Dow Jones Industrial Average (DJIA – 10,625.83) reversed course around midday, settling with a slim gain of 5.7 points, or 0.1%.
The S&P 500 Index (SPX – 1,136.94) also staged a late-session turnaround, ending with a small gain of 1.3 points, or 0.1%. Finally, the tech-rich Nasdaq Composite (COMP – 2,354.23) was the first major market index to peek its head above breakeven, ending with the most impressive gain of 7.4 points, or 0.3%.
Crude futures tumbled to a five-month low today, as a strengthening greenback made it more expensive for foreign-currency holders to purchase the dollar-denominated commodity. In addition, economists are predicting a glut of 800,000 barrels ahead of Wednesday’s domestic inventories report, boosting investors’ demand-related concerns. By the close, crude oil for June delivery swallowed its fifth straight loss, surrendering $1.55, or 2.2%, to settle at $70.06 per barrel.
A dismal day in the equities market was a boon for gold futures today. Against this backdrop, June-dated gold futures added 30 cents, or 0.02%, to end at $1,228.10 an ounce. Elsewhere in the metals market, copper futures plummeted nearly 7% in the wake of weaker-than-expected manufacturing data, as well as mounting concerns about economic stagnation in China. By the close, copper for June delivery shed 20 cents to finish at $2.92 a pound.
