Blue Chips Prop Up Dow

Markets were flat on the first full day of trading after yesterday's software disaster. The Dow gained 33.20 points and closed at 17,548.52. The index is well below where analysts expected it to be during midsummer. The NASDAQ added 12.64 points and closed out the trading day at 4,922.40. The S&P 500 was up 4.63 points, just lagging the NASDAQ in real gains. It closed the day at 2,051.31.

Decent Day for Blue Chips

It took the huge staying power of the blue chips to anchor the market.
Mid-cap stocks were up and down, but the blue chips held strong. 3M (MMM) posted gains of over a point to close at $153.75 per share. Goldman Sachs (GS), Disney (DIS), IBM (IBM), and Johnson & Johnson (JNJ) were all strong as well. Blue chips can make or break the market with big moves, but today they settled into a holding pattern that preserved the Dow's gains and helped to end the day in the black.

China Bounces

After two days of hemorrhaging and over 10% in real losses, Hong Kong's Hang Seng bounced today. The index, which is where most Chinese companies list themselves, posted gains of over 1,000 points in trading today. Movement of over a thousand points isn't entirely out of character for this volatile marketplace, but today's bounce was a welcome respite for overseas traders.

Currently, the Chinese consumer economy is undergoing a correction. After a lot of big movement forward, including skyrocketing imports, Asia as a whole is sinking slightly this week. The value of the Japanese Yen and Chinese Yuan both rose today after a week of losses.

Oil Imploding Ahead of Iran Deal

The price of oil was expected to be volatile this summer, but a potential political deal with Iran is making the commodity drop like a rock. The concern over a coming peace with Iran is that the marketplace will eventually end up flooded with Iranian oil, which is currently hard for the country to sell under sanctions.

Considering that US production is at record levels and OPEC is showing no signs of slowing their own production, the potential for Iranian oil in the saturated market means that prices are heading down. It's still too soon to say what this could mean at the pump for Americans, but the news is likely to be good.

Corn Strong Going Into Harvest

Corn futures have been up and down all spring, but this summer they've settled into a pattern of gains. The price of corn has risen 15% over the past 30 days, and is showing no signs of slowing down ahead of harvest. The move in prices is a good thing for farmers, but will likely result in higher prices at the grocery store.
Published on Jul 9, 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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