Friends
The broadening out of the market advance was well in play for the third day in a row until the last hour of trading today. Stimulus talks bogging down on the Hill and an announcement a college football conference was postponing the football season seemed to take the steam out of things. All in all, a nice rally turned into a disappointing reversal.
By the close, the Dow Jones Industrial Average was down 104 points to finish the day at 27,686. The S&P 500 was down 26 points to close at 3,333. Nasdaq lost ground again as the tech heavy QQQ index was down 5 point to close at 265. Gold finally hit a wall with the precious metal down $110 to trade at $1,929 per ounce, while oil was down $.41 to trade at $41.53 per barrel WTI.
It’s likely that the folks on the Hill will get a stimulus package done at some point, and actually the more stocks pull back the likelier a deal gets done. But, more important is the market action over the past week. We are finally seeing some “weakness” in the handful of stocks that brought us back from the abyss. The question is can cyclical and economic sensitive stocks fill the very large space that the weakening leaders might leave? This will be very interesting to watch play out.
Have a nice evening everyone.
