Dow Drops Citigroup, Stocks Spin Higher Recession Eases

  • June 1, 2009
  • David Goodboy

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
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CB Richard Ellis
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Walt Disney
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Nordstrom
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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.

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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

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