U.S. Market Indexes Recovering from Brexit Anomaly
U.S. market indexes were higher on Tuesday as stocks seem to have recovered from the Brexit news on June 24. For the day the Dow Jones Industrial Average closed at 17409.72 for a gain of 269.48 or 1.57 percent. The S&P 500 was also higher, closing at 2036.09 for a gain of 35.55 points or 1.78 percent. The Nasdaq Composite closed higher at 4691.87 for a gain of 97.42 points or 2.12 percent. The VIX Volatility Index was lower at 18.89 for a loss of -4.96 points or -20.80 percent.
Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.
Tuesday’s Market Movers
The day’s leading economic report, GDP, greatly helped stocks as they recovered from the Brexit news. The Commerce Department released its final estimate of GDP for the first quarter along with the accompanying corporate profits report. GDP was revised up to 1.1 percent SAAR and corporate profits decreased 2.3 percent year-over-year. These reports showed improvement for the economy. The GDP estimate was revised up in its final report. Corporate profits, while down year-over-year were still improved from the previous year’s report of -3.6 percent.
Stocks trading actively for the day with gains included the following: Bank of America, Apple, Citigroup, Ford, Microsoft, General Electric and KeyCorp.
In the Dow Jones Industrial Average, stocks leading gains included the following:
The Travelers Companies 3.43
Exxon Mobil 2.31
Home Depot 2.29
General Electric 2.11
Top sectors for the broad market were utilities and financial. In technology, the Nasdaq Composite closed higher at 4691.87 for a gain of 97.42 points or 2.12 percent. The Nasdaq 100 was also higher at 4290.47 for a gain of 89.41 points or 2.13 percent. Stocks leading gains in the technology sector included the following:
Endo International PLC 18.26
Liberty Global PLC 8.12
Seagate Technology PLC 7.95
In commodities, gold traded lower as evidenced by the SPDR Gold Trust which reported a loss of -1.36 points or -1.07 percent. The dollar was lower for the day as the euro and pound gained. The U.S. Dollar Index closed at 95.97 for a loss of -0.40 points or -0.42 percent.
In small-caps, the Russell 2000 followed the day’s trend higher closing at 1107.30 for a gain of 17.65 points or 1.62 percent. The S&P 600 closed at 679.84 for a gain of 8.94 points or 1.33 percent. The Dow Jones Small-Cap Growth TSM closed at 6779.27 for a gain of 126.28 points or 1.90 percent. The Dow Jones Small-Cap Value TSM closed at 8063.29 for a gain of 132.36 points or 1.67 percent.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index which closed at 1442.50 for a gain of 25.84 points or 1.82 percent; the S&P 100 which closed at 902.36 for a gain of 14.98 points or 1.69 percent; the Russell 3000 which closed at 1198.45 for a gain of 21.10 points or 1.79 percent; the Russell 1000 which closed at 1126.44 for a gain of 19.98 points or 1.81 percent; and the Dow Jones U.S. Select Dividend Index which closed at 591.19 for a gain of 7.32 points or 1.25 percent.