US stocks close marginally lower on Monday

Nasdaq Composite outperforms throughout the session

U.S. stocks ended June and the second quarter higher, even as the broader market closed marginally lower on Monday, 30 June 2014. The stock market finished the second quarter on a subdued note with the major averages ending near their flat lines. The Nasdaq Composite outperformed throughout the session, while the S&P 500 surrendered its slim gain into the close. The S&P 500 recorded the fifth consecutive month of gains and the biggest second-quarter gain since 2009.

On Monday, the Dow Jones Industrial Average shed 25.24 points, or 0.2%, to 16,825.96, but gained 1.9% over the past month and 2.2% over the past quarter. The Nasdaq Composite defied the trend and ended the day 10.25 points, or 0.2%, higher at 4,408.18. The tech-heavy index gained 3.9% in June and 5% over the past quarter. The S&P 500 closed less than a point lower at 1,960.19, gaining 3.9% over the month and 5% over the quarter.

 

For the first half of 2014, the S&P 500 recorded a 6.1% rise, the Dow industrials rose 1.5%, and the Nasdaq gained 5.5%. Five of ten sectors posted gains with this year's leaderutilitiessetting the pace.

On Monday, six cyclical groups ended on a mixed note. Consumer discretionary, energy, financials, and industrials lagged, while technology and materials held gains throughout the day.

This week will be shortened by the Fourth of July holiday on Friday, which means closely watched U.S. jobs data for June will be released on Thursday. Market is looking for the addition of 215,000 nonfarm-payrolls jobs and no change in the unemployment rate of 6.3%.

There was more downbeat economic data from the European Union released on Monday. EU inflation was unchanged in June from May, at 0.5% on an annual basis. The figure was in line with forecasts and remained at a four-year low. The European Central Bank wants to see an annual inflation rate of around 2%. The same report showed bank lending in the EU fell again, as it has done for 25 months in a row.

The market place is awaiting important economic data from China, as its purchasing managers index (PMI) is due out on Tuesday. On Monday China housing prices were reported down in June. This is yet another sign of a slowing rate of growth in China's still-booming economy.

U.S. economic data due for release on Monday included the ISM Chicago business survey, pending home sales, and the Texas manufacturing outlook survey. None of that

Manufacturing activity decelerated in the Chicago region as the Chicago PMI fell to 62.6 in June from 65.5 in May. The consensus expected the index to fall to 61.0 The Chicago PMI has exceeded 60.0 for three consecutive months. Production strengthened in June as the related index increased to 70.1 from 64.4 on strong levels of backlogs. New orders growth faded in June as the related index fell to 65.1 from 70.2. Backlog levels dropped to 55.4 from 61.4. The Employment Index increased to 58.4 from 54.6. Pending home sales for May rose 6.1%, which was better than the 1.5% increase forecast by the consensus. The reading followed last month's revised increase of 0.5% (from 0.4%)

It was mixed finish for bullions on Monday, 30 June 2014. Gold futures on Monday settled with their biggest monthly gain since February, as traders awaited the market's next likely catalysts, which will likely come in the form of monthly U.S. employment data and the European Central Bank meeting later this week. Silver prices dropped.

Gold for August delivery tacked on $2, or 0.2%, for the session to settle at $1,322 an ounce on the Comex division of the New York Mercantile Exchange. Prices saw gains of around 6.1% for the month and 3% for the quarter.

September silver fell nearly 8 cents, or 0.4%, to settle at $21.06 an ounce following a gain of around 0.6% last week. For the month, prices were up nearly 13% for the month and logged a quarterly gain of 6.6%.

Crude Oil futures dropped on Monday, 30 June 2014 on growing confidence Iraq's oil exports will remain insulated from the turmoil, but prices still logged sizable gains for the month and quarter. Natural-gas prices, meanwhile, gained to pare back some of their monthly loss as traders watched a storm system developing near Florida for any potential disruptions to Gulf of Mexico energy output.

Brent crude took the biggest hit for the session, with the August contract on the ICE Futures exchange falling 94 cents, or 0.8%, to $112.36 a barrel. Brent crude saw gain of around 2.7% for the month, based on the most-active contracts. For the quarter, it ended 4.3% higher.

Tomorrow, the ISM Index for June (consensus 55.8) and May Construction Spending (0.4%) will be reported at 10:00 ET, while auto and truck makers will be reporting their June sales throughout the day.

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