Tuesday, June 8: SUMMARY:
In an interview last night, Federal Reserve Chairman Ben Bernanke told ABC’s Sam Donaldson that he doesn’t expect a double-dip recession. “So far the news is pretty good,” said the Fed chief. “My best guess is that we’ll have a continued recovery [but] it won’t feel terrific.”
In response the bulls were noticeable by their absence until the final half-hour of the session, which saw the Dow roar to a triple-digit gain. Another roller coaster day that saw the Dow gain more than 100 points, but the Nasdaq and small caps still finished off. However, the recent run of late day sell-offs ended, and the S&P 500 Index continued to find buyers near its February lows.”
The Dow Jones Industrial Average (DJIA – 9,939.98) raced higher in the final minutes of trading, recording a final gain of 123.5 points, or 1.3%, but could not climb high enough today to challenge the 10,000 region.
The S&P 500 Index (SPX – 1,062.00) gained 11.5 points, or 1.1%, joining the Dow with an eleventh-hour strong close. The SPX found support today at the 1,040 level, the site of its late-May low.
The Nasdaq Composite (COMP – 2,170.57) bucked the trend by settling lower, although it pared its losses significantly in afternoon trading. The COMP trimmed its daily drop to just 3.3 points, or 0.2%.
Crude futures caught a lift today, buoyed by a rebound in the beaten-down euro and by the close, crude oil for July delivery added 55 cents, or 0.8%, to settle at $71.99 per barrel.
Gold futures enjoyed a strong session as the front-month contract cruised to an all-time peak of $1,254.50 per ounce, as traders considered a warning about Britain’s precarious sovereign debt load. Gold finished with a healthy gain of $4.80, or 0.4%, at $1,245.60 per ounce, a record high close.
