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Stocks snap six-day losing streak; VIX falls

The Dow gained about 75 points, as stocks closed higher for the first time in June

In this June 3, 2011 photo, specialist John Urbanowicz works on the floor of the New York Stock Exchange. Stocks ended higher Thursday, June 9, following an announcement that the Greek Cabinet will approve a new austerity plan for the nation.

Richard Drew / AP

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By JeeYeon Park,

Stocks rebounded Thursday after a six-day selloff to close higher for the first time in June, after investors cheered the international trade report and following the Greek Cabinet's decision to support a new round of austerity measure for its debt-ridden nation.

The Dow Jones Industrial Average gained 75.42 points, or 0.63 percent to close at 12,124.36, slipping slightly from its intra-day highs.

DuPont, Chevron and JPMorgan were among the top gainers on the blue-chip index, while Verizon slipped.

The S&P 500 added 9.44 points, or 0.74 percent, to finish at 1,289, while the tech-heavy Nasdaq climbed 9.49 points, or 0.35 pecent, to end at 2,684.87.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, tumbled more than 5 percent to finish below 18.

Energy, materials and financials were the leaders among the key S&P sectors.

Trading was light with volume on the consolidated tape of the NYSE at 3.34 billion shares, while 909 million shares changed hands on the floor.

“This is much more of a technical rebound and there’s a lot of bargain hunting going on,” according to Kenny Polcari, managing director at ICAP Equities. “You’re going to continue seeing a churn in the markets…We’re in for a slow grind lower over the summer.”

Polcari said 1,290 on the S&P is the next target he is watching, but without any positive macroeconomic news going forward, the index could easily decline to 1,250—which is the March low, and coincidentally the 200-day moving average.

Banks traded higher across the board, after slumping in the recent weeks. Citigroup and Wells Fargo gained almost 3 percent each. Even Morgan Stanley gained after Rochdale lowered its price target on the financial giant to $28 from $37.50. But the sector is still the worst performer so far this year.

Materials and ag-related stocks such as Deere and CNH climbed following the USDA's monthly crop production report, which lowered projected corn surplus and acres planted and helped send futures to a record high. Monsanto shares climbed after the firm's board approved a dividend of 28 per share.

On the tech front, Texas Instruments cut its earnings and revenue forecast, blaming the shortfall on major client Nokia's struggling cellphone business. Meanwhile, Bank of America and Citigroup cut their price targets on TI. Nokia gained even after the firm's chief technology officer announced a leave of absence and is unlikely to return after disagreements over the strategy of the flailing company.

Rival Research In Motion edged higher, even after Citigroup lowered its rating on the BlackBerry maker to "hold" from "buy."


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