Stock Market News for June 24, 2010 - Market News

Stocks swung between gains and losses in the final two hours of trading before ending mixed as the Federal Reserve assumed a cautious tone in its take on the economy.  While keeping the key fed funds rate at historic lows, the policymakers noted that the financial conditions were less supportive now, given developments abroad.

Earlier, stocks fell sharply after a Commerce Department report said new home sales dropped almost 33% to an annual rate of 300,000 in May, the lowest since record keeping began.  Housing bothered the policymakers too as they noted “housing starts remain at a depressed level."  Despite the weakness in market and the new home sales report, homebuilder shares managed to move higher, with PulteGroup PHM shares rising 2.1% and DR Horton DHI adding 2.5%.

This morning’s stock futures suggest some weakness.  Dow Jones industrial average futures are down 47 points, or 0.5%, at 10,192.  Standard & Poor's 500 index futures are down 5.90, or 0.5%, at 1,081.50, while Nasdaq 100 index futures are down 13.75 points, or 0.7%, at 1,860.00.

Crude prices dropped $1.13 to $76.72 after a report showed an unexpected build in crude supplies.  Lower crude prices were a drag on energy shares.  Energy stocks, as a group, fell 1%, with Chevron CVX shares falling 2.4% and Exxon XOM dropping 1.4%.  Offshore drillers weakened on reports of fresh drilling moratorium in the coming weeks.  Rowan RDC shares dropped 3.3%; Pride International PDE fell 2.7%; ENSCO PLC ESV declined 2.2%.

After Tuesday’s largest single-session drop in two weeks, the Dow industrials managed to close with a gain of 5 points at 10,298.  The widely tracked S&P500 retreated 0.3% to 1092, remaining below the 1100 mark.  The tech-heavy NASDAQ shed 0.3% to close at 2254.  The CBOE Vix, the market’s measure of volatility, retreated below 27.  On the New York Stock Exchange, 1.1 billion shares changed hands as declining issues outpaced advancing shares by an eight to seven margin.

Wells Fargo WFC, meanwhile, warned weaker investment banking volume in the second quarter will impact results for Bank of America BAC, Goldman Sachs GS, JP Morgan JPM and Morgan Stanley MS.  On Tuesday, William Blair had lowered quarterly estimates for Goldman and Morgan Stanley.