Market wrap: a strong night on commodity markets failed to hold Wall Street in positive territory as an early rally faded into the close. The Dow Jones index was 115 points ahead in morning trading but finished down 53 points or 0.62%. The S&P and Nasdaq recorded similar losses as financials again weighed on the market. The S&P Bank Index slumped 3%.
Gold miners were big gainers as the precious metal added 1% to $937, its highest level in two months, on continued weakness in the US dollar. An index of US gold/silver mining companies surged 5% to eight-month highs.
Oilers also made headway after crude topped $62 for the first time since November. The 3% rise followed a report that showed a larger-than-expected fall in US inventories last week. Base metals were mixed but copper advanced for the fifth consecutive day, its longest winning streak since mid-April.
Futures traders appear to expect the strength in commodities to outweigh most of the weakness in the US on our mining-heavy market today. The SPI lost just 3 points at 3831.
All of this points towards a two-speed market here: weakness in financials off-set by gains in miners. Goldies should do well and oilers should add to this week's advances.
