Monday, June 7: SUMMARY:
After Friday’s plunge, stocks see-sawed back and forth today before selling off 150 points in the last two hours of trading. It appears that negative European news continues to dominate the markets and as the euro continues to make new lows, it will be difficult for the markets to rebound.
The Dow Jones Industrial Average (DJIA – 9,816.49) suffered a loss of 115.5 points, or 1.2%. The Dow is now testing support in the 9,800 neighborhood, levels not seen since early February.
The S&P 500 Index (SPX – 1,050.47) dropped 14.4 points, or 1.4%. Right before the closing bell, the SPX hung on 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%. The next potential area of support for the COMP is at 2,150
Crude futures ended modestly lower today and by the close, crude oil for July delivery lost 7 cents, or 0.1%, to settle at $71.44 per barrel.
Gold futures capitalized on its status as a safe-haven alternative to stocks, particularly with the U.S. dollar gaining ground against the euro as the August-dated contract ended the day solidly higher, adding $23.20, or 1.9%, to finish at $1,240.80 per ounce.
