Tuesday, June 1,2010: SUMMARY:
Today the markets weighed tumbling commodities prices against encouraging construction and manufacturing data. The government said construction spending rose a better-than-expected 2.7% in April, marking the largest increase in nearly 10 years. The Institute for Supply Management’s (ISM) manufacturing index declined to 59.7 in May, compared to economists’ predictions for a steeper drop to 59.0.
Unfortunately, the upbeat economic data couldn’t hold back the bears for long. The U.S. dollar’s four-year peak versus the euro, along with escalating concerns about the still unplugged oil leak in the Gulf of Mexico weighed on energy issues, eventually pushing the Dow Jones Industrial Average to a triple-digit deficit by the close.
Today marks the 22nd straight session the S&P 500 Index has NOT had consecutive up days, the longest streak since October 2008, which wasn’t a good time to be long the market.
The Dow Jones Industrial Average (DJIA – 10,024.02) gave up an early 85-point lead and closed with a loss of 112.6 points, or 1.1%. Despite the late session selling pressure, the index was able to close above the round-number 10,000 level.
The S&P 500 Index (SPX – 1,070.71) also turned lower in the final hour of trading, ending on a deficit of 18.7 points, or 1.7%. As noted earlier, the SPX hasn’t finished two consecutive sessions in the black in 23 sessions – marking the longest streak since October 2008.
Finally, the Nasdaq Composite (COMP – 2,222.33) followed suit, trading lower in the final minutes giving up 34.7 points, or 1.5%, by the close.
By the close, crude oil for July delivery shed $1.39, or 1.9%, to finish at $72.58 per barrel.
Gold futures ended higher for the sixth consecutive session as August-dated gold futures ended with a gain of $11.90, or 1%, to settle at $1,226.90 an ounce – the highest closing price for a front-month contract since May 17.
