The Dow closed down a whopping -1.67 (-0.01%) at 12,502.81 getting as high as 12,575.96 before giving it all back plus a bit.
There were 14 Dow components up today. Leading the way higher were JPM (+4.61%), BAC (+2.20%), HD, WMT, KFT, CSCO, UTX, GE, TRV, VZ, JNJ, MCD, AXP and MSFT. Disney (DIS) was unchanged on the day. The leading Dow losers were AA (-1.28%), PFE, DD, CAT and HPQ.
I wonder who’s loading up on the banks?
Another big loser today, not a Dow stock, was Facebook (FB). Facebook has found a rotten place in IPO history, repricing its shares higher before the open, then falling back below the original price point. I bet we see even lower prices yet. There’s probably still some folks trying to cut their losses and will sell into any strength. Remember to never try and catch a falling knife.
The market looks like it wants to go higher but can’t find a reason to do it.
Apparently about an hour before the closing bell, reports surfaced that former Greek prime minister Lucas Papademos told Dow Jones Newswires that Greece is considering making preparations to leave the eurozone. That is not a reason to go higher.
The euro sank on the news, falling more than 1% against the dollar, pulling stocks down with it.
After the market open, the National Association of Realtors said that existing home sales rose 3.4% in April to an annual rate of 4.62 million, up 10% year-over-year. Home affordability also came in at record levels.
European stocks ended higher and Asian markets ended higher too, but closed before Fitch downgraded Japan, the world’s No. 3 economy.
The euro sank on the Greek news, slipping more than 1% against the dollar.
The national average price of gasoline dropped nine-tenths of a cent to $3.680 per gallon. Here in Gig Harbor, WA we are still paying $4.22 per gallon at Costco because of all the down refineries in our area.
Oil for July delivery was down $1.38 to settle at $91.48 a barrel.
Gold futures for June delivery was down $22.10 to settle at $1,566.60 an ounce.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.79% from 1.74% late Monday.