Top 3 Reasons Markets Were Mixed After the IEA Oil Announcement

Markets closed mixed on Wall Street: Dow -0.49%, S&P -0.28%, Nasdaq +0.66%, Oil -3.89%, Gold -1.92%.

On the commodities front, Oil (NYSE:USO) dropped to $91.70 a barrel, almost $3 below yesterday, after the IEA announced they would be releasing 60 million reserve barrels of crude. Precious metals were down with Gold (NYSE:GLD) closing at $1,523.50 and Silver (NYSE:SLV) down 3.87% to $35.33.

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Today’s markets were mixed because:

1) Housing and jobs data. The Department of Commerce released data today showing that new home sales decreased month-over-month in May. U.S. jobless claims were expected to fall to 415,000 last week, but instead were up 9,000 to 429,000

2) Tech sector gains. The tech-heavy Nasdaq was the only index in the green today with companies like Apple (NASDAQ:AAPL), Research in Motion (NASDAQ:RIMM), and Intel (NASDAQ:INTC) leading the way. Too bad Micron (NASDAQ:MU) and Oracle (NASDAQ:ORCL) just missed earnings expectations! Learn More: Oracle Corp Earnings Cheat Sheet: Double-Digit Growth Again and Micron Technology Inc. Earnings: Margins Suffer as Costs Rise, Profit Falls.

3) IEA releases crude reserves. In terms of the markets, this was mostly bad news. It pushed down prices for oil companies, with two big players, Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM), dragging down the Dow Jones Industrial Average. It also sent crude futures plummeting to below $90 a barrel at one point, ultimately settling 3.89% down for the day. The Energy Select Sector SPDR (NYSE:XLE) also took a big hit, but recovered slightly to close the day 1.09% in the red. The news did, however, give the NYSE Arca Airline Index (XX:XAL) a bit of a boost as airlines anticipated lower fuel prices.

Bonus: How Has the IEA’s News Affected Markets and Gas Prices.

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