DJIA Market Close for Thursday, June 21, 2012

The Dow closed down -250.82 (-1.96%) at 12,573.57. The other indices were all hit just as badly.

I am very glad I had not yet begun adding a long position. My plan was to look at going long after the July fourth holiday.

However, this market could turn on a dime, so to speak. One must remain open to all possibilities.

There were only two Dow stocks up today, MRK (+0.61%) and VZ (+0.07%).

The 28 Dow losers were led by AA (-4.15%), HPQ, BAC, CVX, XOM, INTC, CSCO and HD.

As you can see above, Commodity-related stocks took a big hit, with shares of Exxon Mobil (XOM), Chevron (CVX) and Alcoa (AA) were among the Dow’s biggest decliners.

Bank stocks also sold off sharply, with Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), and JPMorgan Chase (JPM) all dropping more than 2%. However, Morgan Stanley, the bank subject to the largest possible downgrade, fell less than its peers, at 1.7%.

Dow component Johnson & Johnson (JNJ)
is said to be close to settling a probe with the Justice Department into the company’s promotion of the antipsychotic drug Risperdal, which could include a payment of $1.5 billion, according to a report in the Wall Street Journal. The payment would be the largest ever for the company and the company would avoid a felony charge that could prevent the company from selling its medicines to government health programs such as Medicare.

The dollar was up against the euro and Japanese yen, but slipped versus the British pound.

Gold futures for August delivery lost a whopping $50.30 to $1,565.50 an ounce.

The price on the benchmark 10-year U.S. Treasury was up, pushing the yield down to 1.62% from the 1.66% level reached late Wednesday.

MRK and WMT both made new 52 week highs during todays session.

New High of the Day – Merck (MRK).

New High of the Day – Wal-Mart (WMT).

Tomorrow before the open, notable stocks reporting earnings include CCL and DRI.

In review, the hot Dow component stocks based on recent 52 week highs are MRK, VZ, DIS, T, WMT and HD. Will the hotness continue through years end? Hard to say. My plan is buying ODVYX (Emerging Markets) and PSVIX (Small Cap) to ride into the presidential election and hopefully hit my usual yearly target of a 20 percent gain.

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