Dow Drops Citigroup, Stocks Spin Higher Recession Eases

By | TradingMarkets.com | June 01, 2009 04:30 PM
Symbols: CSCO, JWN, CBG, DIS

A myriad of positive economic news spun the major indexes sharply higher on the day. Construction spending and income showed improvement fueling the all day rally. Dow Jones and Company dropped Citigroup from its famed Dow Jones Industrial Index and added Cisco to replace General Motors. Recession easing data sent the DJIA higher by +221.11 to 8721.44, the Nasdaq advanced +54.35 to 1828.68 and the S&P 500 advanced +23.73 to 942.87.


Cisco ( CSCO | Quote | Chart | News | PowerRating) - Climbed 5.41% or $1.00 after getting word it will replace Citigroup in the DJIA.


CB Richard Ellis ( CBG | Quote | Chart | News | PowerRating) - The commercial real estate concern advanced 15.21% or $1.11 upon being upgraded by Goldman.


Walt Disney ( DIS | Quote | Chart | News | PowerRating) - Rose by 3.34% or 0.81 cents to $25.03 on the box office strength of its "UP" film.


Nordstrom ( JWN | Quote | Chart | News | PowerRating) - The high end retailer surged 14.02% or $2.76 to $22.45 on positive consumer economic data.


Oil added $2.27 to $68.15, Gold fell $0.30 to $980.00 and the VIX index climbed 3.87 to 30.04.


According to a recent report, eight out of ten securities traded are exchange-traded funds. Want to learn how to trade them? Click here to pre-order High Probability ETF Trading, the first quantified book of trading strategies to improve your ETF trading.











Market Snapshot
















Dow

 +221.11 8721.44










NASDAQ

 +54.35 1828.68






S&P 500

 +23.73 942.87










Economic
News









Personal Income (Apr): Consensus: -0.2%, Prior: -0.2%, Revised From: -0.3%


Personal Spending (Apr): Consensus: -0.2%, Prior: -0.3%, Revised From: -0.2%


Construction Spending (Apr): Consensus: -0.8%, Prior: 0.3%


ISM Index (May): Consensus: 42.0, Prior: 40.1


Pending Home Sales (Apr): Consensus: NA, Prior: 3.2%


Auto Sales (May): Consensus: NA, Prior: 3.2M


Truck Sales (May): Consensus: NA, Prior: 3.8M


ADP Employment Change (May): Consensus: -543K, Prior: -491K


Factory Orders (Apr): Consensus: 0.3%, Prior: -0.9%


ISM Services (May): Consensus: 45.0, Prior: 43.7


Crude Inventories (05/29): Consensus: NA, Prior: -5.41M


Initial Claims (05/30): Consensus: 620K, Prior: 623K


Productivity-Rev. (Q1): Consensus: 1.2%, Prior: 0.8%


Unit Labor Costs (Q1): Consensus: 2.9%, Prior: 3.3%


Average Workweek (May): Consensus: 33.2, Prior: 33.2


Hourly Earnings (May): Consensus: 0.2%, Prior: 0.1%


Nonfarm Payrolls (May): Consensus: -550K, Prior: -539K


Unemployment Rate (May): Consensus: 9.2%, Prior: 8.9%


Consumer Credit (Apr): Consensus: -$6.0B, Prior: -$11.1B


Join the discussion on Twitter. Follow @Trading_Markets to leave your questions and feedback with the people you follow everyday at TradingMarkets.com.

Read David's latest thoughts on his blog, www.marketsurfer.com
Original publication: June 01, 2009
>> See more articles by

How to Successfully Trade ETFs

Do you want to learn how to trade more successfully, more consistently ... and with more confidence? If so, then the TPS strategy is for you.

Hundreds, if not now thousands, of ETF traders successfully use the TPS trading strategy to find the best ETF trade set-ups each day to place winning trades.

FREE NEWSLETTERS

What Stocks and ETFs are headed up and down this week?

Our Weekly Newsletter covers this in dept and gives performance information on the previous week.

TradingMarkets Weekly Newsletter

UPCOMING EVENTS
Learn new strategies, how to trade in this market, and the stocks you should be focusing on each day. Join us for our free 20 minute tele-seminars during the week.
Tuesday February 21 01:00 PM
Trade with a Scientific Approach
Presented By Phil Suarez
Thursday February 23 12:30 PM
Hear What Kevin Haggerty Sees in the Stock Market Today!
Presented By Kevin Haggerty
* Attendance is strictly limited and seats are filled on a first-come, first-served basis.