Dow Dives Below 18,000

Markets slid steadily downward in trading today, with the Dow dropping over 100 points in an hour at one point during the day. The NASDAQ ended the day down 40 points at 5,059.13, and the S&P 500 lost 18.23 points to close at 2,095.84. The Dow was down a total of 170.69 points, and it closed the day below 18,000 for the first time since the beginning of May.

Blue Chips Crumble and Give Back Their Value

Blue chip and large-cap stocks lead in losses today. They had been providing stability to the market this week.
Yesterday, when the energy sector took a big hit, blue chip stocks were rock steady and the market barely slipped. Today, giants like Boeing (BA), IBM (IBM), and United Healthcare (UNH) were down, and the market fell with them.

If anything, blue chips have been gaining in the face of sluggish markets, but after today's fall that might not be the case. Boeing is set to end the week flat despite a strong start, and IBM's rocky 5-day stretch isn't helped by a 2% loss on the day. Thinking in the short term, it's days like today that completely ruin your whole week.

Gold Drops Too

The price of gold was down another $10 to $1,175.20 per troy ounce today, bringing losses to 1.34% this month. I've predicted dead cat bounces before with success, and it looks like we're in store for another one. Prices hit a $1,220 per troy ounce ceiling in May, and they've been falling ever since, with the exception of last week. Unfortunately for gold investors, they call it an exception for a reason, and last week's small recovery is going to be just another dead cat bounce for the price of gold.

Wynn Resorts (WYNN) Rises on Rumors About MGM (MGM) Merger

Wynn Resorts (WYNN) had an amazing day despite the falling Dow, thanks to rumors of a merger with MGM Resorts (MGM). The two companies were both up on the speculation, but Wynn had the better day by far, gaining over 7%. Wynn rose 7.39 points to close the day at $109.44. MGM closed at $20.28, up nearly 3%.

Frontier Communications (FTR) Down 7%

The share price of Frontier Communications (FTR) fell 7% in trading today, spurred on by a sudden upgrade. Share prices fell 7.06% to $5.00 today, bringing the company near 6-month lows. Frontier was just upgraded on June 3rd, but investors sold out when the share price started to rise on news of the upgrade.
Published on Jun 4, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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