Friends
Today’s trading session (and the overnight futures session) served as a reminder that the markets are at any moment susceptible to headline risk. News that the trade deal with China was running into problems that could lead to additional tariffs going into effect sent futures tumbling overnight and led to an early morning decline in the Dow of more than 470 points. But, as the trading session wore on, buyers continued to appear and losses continued to be trimmed.
By the close, the Dow Jones Industrial Average was down 66 points to finish the day at 26,438. The S&P 500 was down 13 points to close at 2,932. Gold was up $1 to trade at $1,282 per ounce, while oil was up $.93 to trade at $62.87 per barrel WTI.
We are in the home stretch of earnings season, one that has been a little better than expected, but the China trade deal is likely to garner most of the headlines this week. With stocks trading near all-time highs it is not surprising that markets are even more vulnerable to headline risk. Let’s see if the trade negotiations are just a big game of chicken, or will there be some setbacks that affect stocks in a longer term manner. Stay tuned, we’ll let you know how it all plays out.
Have a nice evening everyone.
