By Markus Heitkoetter
It was a wild trading day!
Things kicked off with a surprise increase in Unemployment Claims. The premarket report showed that 294,000 people filed for unemployment insurance versus the 277,000 forecast.
Despite the bad news, stocks managed to open the session higher this morning.
But immediately after the open, stocks started to slide. The drop lasted the entire morning session, and at one point the S&P was down 0.7% and the NASDAQ was down 1.1%.
Then just when it looked like things could only get worse, the major indices began to turn around.
An afternoon rally erased morning losses. And after a small dip in the afternoon, the major indies finished the day mixed.
Fed members were busy today, with Fed Member Mester and Fed Member Rosengren speaking.
Mester said “risks to economic forecasts should not paralyze policymakers.” And Rosengren said that the market is “underestimating the pace of rate hikes.” The comments from both members could be considered bad for stocks (if Fed members want the next rate hike to occur sooner than later), but traders seemed to shrug off the concerns.
Here’s where the major indices ended the day:
The S&P finished with flat. Down less than a point, the S&P ended at 2,064.
The DOW ended 0.1% higher. Adding 9 points, the DOW closed at 17,721.
The NASDAQ was down 0.5%. With a 23 point loss, the NASDAQ finished at 4,737.
Today the NASDAQ lagged behind the major indices. And a lot of the NASDAQ’s weakness had to do with Apple.
Apple (AAPL) lost another 2.4% today. With a close of $90.32, AAPL is now trading at lows not seen since 2014, and is down 12.6% since releasing disappointing earnings at the end of April.
While AAPL struggled, Crude Oil (CL) made new highs for the year. Up 0.7%, today’s close of $45.56 a barrel is the best close of the year!
After being down almost 28% this year, Crude Oil is now up 8.3% in 2016.
Tomorrow is the busiest day of the week for the economic calendar. We have PPI Data and Retail Sales Data at 8:30am ET, and Preliminary Consumer Sentiment at 10:00am ET.