The Dow posted significant gains this week, despite suffering a slump on Monday. Benchmarks ended the first trading day of the week in the red, dragged down by declines in technology stocks. The blue-chip index ended Tuesday’s trading session almost unchanged.

Stocks gained on Wednesday, boosted by gains in technology and financial shares. The blue-chip index gained on Thursday after encouraging retails sales data indicated consumer spending is picking up. The Dow has gained 1.1% during the first four trading days.

Last Week’s Performance

Last Friday, the Dow (DIA) dropped 0.3% after upbeat jobs data raised concerns about rate hike coming as early as this fall. The U.S. economy created a total of 280,000 jobs in May, well above the consensus estimate of 222,000. These were the highest job additions since Dec 2014. This was also significantly higher than April’s job number of 221,000.

The unemployment rate came in at 5.5% in May, up from 5.4% in April. Large inflow of people in the labor force was cited to be reason behind this slight uptick in unemployment rate. The U-6 unemployment rate came in at 10.8% in May, which remained unchanged from April but dropped 12.1% from a year earlier.

For the week, the blue-chip index lost 0.9%. Benchmarks ended a volatile week in the red as a decline in jobless claims and positive nonfarm payroll report raised concerns about rate hike sooner than later. Meanwhile, International Monetary Fund (IMF) urged Fed not to hike rates until next year provided there is a clear indication of a pick-up in wages and inflation rate. IMF also trimmed US’s growth forecast.

Lingering uncertainty over striking a deal between Greece and its creditors also dampened sentiment. Meanwhile, economic reports came in mixed for the week. While reports on construction spending and manufacturing were encouraging, data on consumer spending was disappointing. Additionally, private sector hiring picked up in May and trade deficit narrowed last month. Investors are keeping an eye on economic data for clues on when the Federal Reserve will hike interest rates.

The Dow This Week

Benchmarks ended the first trading day of the week in the red, dragged down by declines in technology stocks. Drop in airline stocks also weighed on the broader markets. Meanwhile, Friday’s upbeat jobs data continued to intensify concerns about rate hike as early as September. The blue-chip index declined 0.5%.

The lack of progress related to Greece’s debt deal with its creditors also dented investor sentiment. Greek and European officials met on Monday, but there was little progress over the country’s bailout program which is about to expire by the end of this month. Monday’s slump resulted in the Dow turning negative for the year.

The Dow ended Tuesday’s trading session almost unchanged, losing a meager 0.01%. The Dow Jones Transportation Average took a beating mostly due to a drop in airline stocks. The index declined for the second straight session, losing 0.3%.

The Procter & Gamble Company (PG - Analyst Report) gained 1.5%, the most among the consumer staples stocks. Shares of Procter & Gamble moved north after Henkel & Co and Coty Inc made offers to acquire separate parts of the company’s beauty businesses. Other consumer staples stocks also gained, with The Coca-Cola Company (KO - Analyst Report) increasing 0.1%.

Stocks gained on Wednesday boosted by gains in technology and financial shares. Rise in energy shares and expectations that Greece may be inching closer to a deal between its creditors lifted investor sentiment. German Chancellor Angela Merkel and French President François Hollande agreed to meet Greek Prime Minister Alexis Tsipras on the sidelines of a Brussels summit to defuse the standoff between Greece and its creditors over the country’s bailout program.

Wednesday’s gains were broad-based, which helped the Dow post its biggest one day percentage gain in more than a month. The blue-chip index advanced 1.3%. Banks and other financial stocks moved north on expectations of a rate hike occurring sooner than later. Decline in crude oil inventories drove oil prices higher, which boosted U.S. energy stocks.

Weakness in the dollar also boosted commodity prices, which eventually lifted U.S. energy related companies. The dollar weakened after Bank of Japan Governor Haruhiko Kuroda said further weakness in Japanese currency is “unlikely.”

The Dow gained 0.2% on Thursday after encouraging retails sales data indicated consumer spending is picking up. Seasonally adjusted sales of retail and food services rose 1.2% to $444.9 billion in May, in line with the consensus estimate. The gain was led by increase in demand for auto sales.

Sales of vehicles and parts increased 2% in May, the best monthly sales in terms of volume since 2001. Increase in demand for sport-utility vehicles and trucks were cited to be the reason behind this uptick in auto sales. Additionally, rise in sales at gasoline stations also boosted retail sales. Sales at gas-stations advanced 3.7% last month.

However, discouraging news on Greece’s debt crisis limited the day’s gains. Representatives from the International Monetary Fund left for Washington from Brussels, citing insufficient progress between Athens and its creditors over the country’s bailout program. Further, IMF spokesman Gerry Rice said, “We are well away from an agreement.”

Components Moving the Index

The Boeing Co. (BA - Analyst Report) is piling up orders amid a booming air travel industry worldwide. Delta Air Lines Inc. (DAL - Analyst Report) announced that it will enter into an agreement with Boeing to buy 60 single-aisle Boeing and Embraer aircraft after it receives ratification of a tentative agreement from more than 12,000 Delta pilots.

Upon successful ratification from its pilots, Delta Air Lines has plans to purchase 20 Boeing-held Embraer SA (ERJ - Analyst Report) E190 aircraft previously operated by another carrier. The U.S. carrier further intends to buy an additional 40 new Boeing 737-900ER aircraft, bringing the total order of the single-aisle jets to 140. The E190 jets are expected to enter Delta’s mainline service in the fourth quarter of 2016.

Caterpillar Inc. (CAT - Analyst Report) announced that its board of directors has approved a 10% increase in its quarterly dividend to 77 cents per share. The move reflects the company’s commitment toward delivering incremental returns to shareholders as well as balance sheet strength. Caterpillar’s share price went up 2% following the news.

Caterpillar’s current payout is 7 cents more than the prior dividend of 70 cents per share. The increased dividend will be paid on Aug 20, 2015, to shareholders of record as of Jul 20, 2015. The current raise comes exactly after a year of the last dividend increase, announced in Jun 2014, when it was hiked by 10% from 60 cents to 70 cents.

DuPont (DD - Analyst Report) has announced pro-rata distribution of common shares of its fully-owned subsidiary – The Chemours Company – to holders of DuPont's common stock. The chemical giant’s board has declared a pro-rata dividend to DuPont stockholders of the outstanding shares of Chemours – a company created from DuPont’s performance chemicals businesses.

Shareholders of DuPont will get one share of Chemours for every five shares of DuPont they hold on the record date of Jun 23, 2015. The distribution of shares, which is subject to the satisfaction or waiver of specific conditions including acceptance of Chemours’ shares for listing on the NYSE, will be made on Jul 1, 2015 (the distribution date). DuPont and Chemours expect that all conditions will be satisfied by the distribution date.

General Electric Company (GE - Analyst Report), according to The Wall Street Journal, is in the final stages of negotiation to divest its private-equity-lending business to Canada Pension Plan Investment Board – the largest pension fund of the country. Worth $10 billion, the held-for-sale portfolio includes assets in the GE Capital Sponsor Finance unit that lends money for companies conducting leveraged transactions, growth funding and recapitalization.

The Canadian pension fund had been actively scouring for big-ticket acquisitions in the private-equity investment market to give it a platform for expansion in this particular area of the finance sector. On the other hand, the asset sale is part of the long-term strategy of General Electric to divest its various non-core operations in order to focus more on its industrial businesses.

The Goldman Sachs Group, Inc. (GS - Analyst Report) and The Blackstone Group L.P. (BX - Analyst Report) have made a combined bid to acquire mortgage assets worth £13 billion ($20 billion). The assets are put up for sale by the UK Asset Resolution Ltd. (“UKAR”), a unit of UK Financial Investments Ltd. (“UKFI”).

Further, realizing the sale’s potential to yield attractive prices for its tax-payers amid the present market scenario, the U.K. government unveiled plans to sell the concerned assets in Mar 2015. The bids for the proposed sale were announced on Jun 5, according to reports.

Reportedly, the collective bid, made by Goldman’s securities division, the tactical opportunities team at Blackstone and Och-Ziff Capital Management Group LLC OZM, and the Special Situations division of TPG Capital, is competing with The Royal Bank of Scotland Group plc (RBS - Snapshot Report), which seeks to deploy excess liquidity on its balance sheet.

Microsoft Corp. (MSFT - Analyst Report) recently slashed the price of Xbox One by $50 to $349. This price cut could help the software giant to gain an advantage against Sony Corp. this holiday season.

Apart from the price cut, the world's largest software maker introduced an updated version of the videogame machine for $399. The new console will include one terabyte of storage, a redesigned controller with improved audio and 3.5-mm headset jack, which can be used without an adapter. The new Xbox One model will be available from Jun 16.

Performance of the Top 10 Dow Companies

The table given below shows the price movements of the 10 largest components of the Dow, which is a price weighted index, over the last five days and during the last six months. Over the last five trading days, the Dow has gained 0.2%.

Next Week’s Outlook

Markets have chalked up gains this week, powered by encouraging retail sales data and hopes that the crisis in Greece would be resolved. However, the situation in Greece remains uncertain and prospects of a resolution have varied almost on a daily basis. It is clear that negotiations between both parties will continue for some time now and this will be a significant factor in determining market direction.

Several crucial reports are scheduled for release next week. This includes data on industrial production, housing starts, CPI and leading indicators. Any positive indications on this front will help stocks move upward in the days ahead.