Stock Market News for June 8, 2010 - Market News

Friday’s disappointing jobs report continued to weigh on the markets, which swung between gains and losses Monday, before a late-session selloff sent the Dow average and the S&P 500 to their lowest close in seven months.  A shaky consumer-credit report also played a part in markets’ slide.

The burst of selling sent large-cap technology shares lower, with big names such as Research in Motion AAPL and Apple AAPL dropping 5.2% and 1.9%, respectively.  Shares in Google GOOG dropped 2.7%.  Research in Motion’s shares fell on worries that Apple’s latest iPhone would impact demand for its BlackBerry phones.  Shares in Bank of America BAC dropped 3.4% after analyst Dick Bove cut the price target for the shares to $22.80 from $27.50.

Fed Chairman Ben Bernanke’s assurances about an economic recovery late Monday have helped send this morning’s stock futures higher. A rising euro has helped European markets pare losses recorded earlier in the session.  Ahead of the opening bell, the Dow Jones industrial average is up 49 points, or 0.5%, to 9,843. Standard & Poor's 500 index futures rose 5.50 points, or 0.5%, to 1,053.50, and Nasdaq 100 index futures rose 7.75 points, or 0.4%, to 1,803.50.

The blue-chip Dow average fell below its May 6 lows of 9870, to 9816.49.  The tech-heavy Nasdaq composite dropped 2%, hurt by the selloff in its technology components, to 2173.90, its lowest close since February 11.  The broader S&P 500 index slid 1.4% to 1050.47.  On the New York Stock Exchange, declining issues beat those that advanced in price by a seven-to-three margin on volume of 1.43 billion shares.  Treasury prices rose, sending the yield on the 10-year note to 3.18% from 3.20%.   

Companies with exposure to overseas markets felt the heat yesterday, with Caterpillar CAT falling 3.3%, and United Technologies UTX and Intel INTC dropping 3%.  A strengthening dollar and growth fears sent shares in Alcoa AA off 3%.

Although the recent selling spree has sent the indexes into a correction territory, with the DJIA off 12.4% from its April 26 high, the S&P500 down 13.7%, the Nasdaq off 14.1% from its April highs, the losses are still short of a 20% plunge that would push markets into a bear market territory.  However, for those looking at technical levels, S&P500's 1040 level represents a key level of support, which bulls hope would bring forth a rally in for stocks, countering bearish fears of a building market downtrend.

Gold prices, meanwhile, continued to soar on the yellow metal’s safety appeal, briefly touching the May 12 record high of $1241 before retreating a little to settle at $1241, up 1.9%. 

Fed Chairman Bernanke's evening remarks helped calm jittery sentiments, as he noted the economic recovery will continue and a double-dip recession would be averted.  Bernanke noted consumers were beginning to spend money and the private sector is "picking up the baton" as the lure of government stimulus begins to fade. “My best guess is we will have a continued recovery, but it won't feel terrific," Bernanke said.  However, the Fed chief remarked that the economic recovery would not be strong enough to drive down the 9.7% unemployment rate.