Inflation fears hit the markets today, following comments from Fed Chairman Ben Bernanke. Indications are that the economy is strong which increases the chances that interest rates will not come down. The Bears took control of the market action moving into the red zone where the major indices held, through out the trading day. At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) moved lower by 80.86 points to end the session at 13,595.46 after rebounding from a triple digit loss during the session of; the NYSE (New York Stock Exchange) posted a loss of 62.58 points to end at 10,001.47 the NASDAQ posted a loss of 7.06 points today for a close at 2,611.23; the S&P 500 moved lower by 8.23 points to end at 1,530.95 and the RUSSELL 2000 moved lower by 6.82 points to close at 848.27 The FTSE All-World Index ex-US (top Large/Mid Cap aggregate from over 2,700 stocks from the FTSE Global Equity Index Series (GEIS) which covers 90% of the worlds investable market capitalization) moved lower by 0.86 to close at 262.98 and the FTSE RAFI 1000 moved lower by 39.48 to close at 6,428.04.
The fourth suspect in the alleged plot to Bomb New York's John F. Kennedy International Airport surrendered today in Trinidad. Abdel Nur from Guyana surrendered before noon and is expected to make an initial court appearance today sometime. The plot was foiled after a law enforcement informant was contacted by one of the planners.
Federal Reserve Board Chairman and a member of the Board of Governors, Ben S. Bernanke commented today: core inflation 'remains somewhat elevated'; core inflation to moderate but risks to upside; current Account Deficit should come down over time; current benign risk environment might not persist; Fed has long-run responsibility for inflation; have seen 'gradual ebbing' of core inflation; Hedge Funds have improved financial efficiency; high resource use still inflation risk; housing downturn 'has been sharp'; housing drag 'somewhat longer' than once thought; inflation expectations 'very well anchored'; long-term real interest rates relatively low; many factors holding down First Quarter GDP to be reversed; market discipline key to hedge fund regulation; net effect of China on U.S. inflation mixed; no big spillovers from housing to broad economy; protectionism 'significant risk' to global expansion; 'quick pace' to Yuan flexibility in China interest; some sub-prime effect on housing already felt and U.S. should grow near potential in coming quarters.
Federal Reserve Board Member Kevin M. Warsh commented today: changing bank roles may raise challenges; hard to measure liquidity given financial innovation and sub-prime knock-on impact contained.
Economic data released for the day:
ICSC-UBS Store Sales: Weekly measure of comparable store sales at major retail chains which is related to the general merchandise portion of retail sales, as reported by the International Council of Shopping Centers. This date accounts for approximately 10% of total retail sales. ICSC-UBS Chain Store Sales were reported today down 0.5% for week of June 2nd.
Redbook: General merchandise portion of retail sales covering only approximately 10% of total retail sales, this data is a weekly measure of sales at department stores, chain stores and discounters. Data released today: U.S. Retail Sales rose by 2.1% in May versus April.
ISM Non-Manufacturing Survey: Compiled from approximately 400 non-manufacturing firms from 60 sectors across the United States. Included in the survey are retail trade, construction, agriculture, mining, transportation, wholesale trade and communications by the Institute of Supply Management. Data released today: U.S. ISM May Non-Manufacturing Business Index came in at 59.7 versus April reading of 56.0; U.S. ISM May Non-Manufacturing New Orders Index came in at 57.4 versus April reading of 55.5; U.S. ISM May Non-Manufacturing Business Index expected at 56.0; U.S. ISM May Non-Manufacturing Prices Index came in at 66.4 versus April reading of 63.5 and U.S. ISM May U.S. ISM May Non-Manufacturing Employment Index came in at 54.9 versus April reading of 51.9.
The trend was lower across the board today for the Energy Sector: Light crude moved lower by $0.60 today to close at $65.61 a barrel; Heating Oil closed with no change at $1.96 a gallon; Natural Gas moved lower by $0.13 to close at $8.06 million BTU and Unleaded Gas moved lower by $0.03 to close at $2.21 a gallon.
Metals Market ended the session mostly lower across the board today: Gold moved lower by $1.20 to close at $675.10 an ounce; Silver closed higher by $0.07 at $13.81 an ounce; Platinum moved lower today by $4.20 to close at $1,298.80 an ounce and Copper moved lower today by $0.03 to end at $3.44 per pound.
On the Livestock and Meat Markets, the trend was mostly higher across the board today: Lean Hogs ended the day higher by 0.13 to close at 75.50; Pork Bellies ended the day higher by 1.78 to close 97.98; Live Cattle moved higher by 0.35 to close at 91.03 and Feeder Cattle ended the lower by 0.15 to close at 110.88.
Other Commodities: Corn moved ended the day lower by 0.25 to close at 382.75 and Soybeans moved nicely higher by 12.50 points to end the day at 828.25.
The e-mini Dow ended the session lower by 61 points to close at 13,617. The total Dow Exchange Volume for the day came in at 96,325 which are comprised of Electronic, Open Auction and Cash Exchange. Traders should review workshops available at the CBOT (Chicago Board of Trade) Educational in-person seminars schedules available on CBOT (Chicago Board of Trade) website.
Bonds were lower across the board today: 2 year bond closed lower by 2/32 at 99 24/32; 5 year bond closed lower by 8/32 at 99 1/32; 10 year bond closed lower by 15/32 at 96 5/32 and the 30 year bond closed lower by 29/32 at 94 27/32.
The end of day results for the CBOT (Chicago Board of Trade) which is comprised of the total Exchange Volume for Futures and Options (EVFO) including Electronic, Open Auction and Cash Exchange ended the day at 3,766,312; Open Interest for Futures moved lower by 210,853 points to close at 9,974,877; the Open Interest for Options moved higher by 101,866 points to close at 6,884,185 and the Open Interest for OTC closed with no change at 5,089 for a total Open Interest of 16,864,151 for a total loss on the day by 108,987.
On the NYSE today, advancers came in at 834; decliners totaled 2,395; unchanged came in at 132; new highs came in at 426 and new lows came in at 45. Gainers and losers for the day on the NYSE: Franklin Resources Incorporated (BEN) shed 3.55 points to end the session at $133.66; Cummins Incorporated (CMI) rallied higher on the Big Board today to post a gain of 6.31 points to end the trading day at $100.92; Terra Nitrogen Company (TNH) moved higher on the session for a gain of 4.82 points to close at $96.34 and PetroChina Company Limited (PTR) posted a favorable gain on the trading day by 4.80 points to close the session at $135.90.
On the NASDAQ today, advanced totaled 1,092 decliners totaled 1,923; unchanged came in at 162; new highs came in at 245 and new lows came in at 52. Gainers and losers for the day on the NASDAQ: Cache Incorporated (CACH) gave up 10.90% to move lower by 1.77 points for a closing price on the day of $14.46; American Woodmark Corporation (AMWD) fell by 3.64 points to close the trading session at $34.28; CROCS Incorporated (CROX) moved higher on the trading day by 2.83 points to end the day at $85.00 and Amazon.com Incorporated (AMZN) climbed higher by 3.29 points on the day to close at $73.71.
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