Friends
Well, that was ugly. Interest rates moved higher on the long end of the yield curve and stock prices moved lower. Though those companies who are reporting earnings so far seem to be beating analysts’ estimates, it appears that market conditions in general are creating a very confusing environment for investors. We will hear from Tesla and Netflix after the market close today.
As for today, by the close the Dow Jones Industrial Average was down 332 points to finish the day at 33,665. The S&P 500 was down 58 points to close at 4,314. The Nasdaq Composite Index was down 219 points to close at 13,314. Gold was up $28 to trade at $1,964 per ounce, while oil was up $1.68 to trade at $88.34 per barrel WTI.
Is the economy too hot? Retail sales were very strong once again, and our last look at jobs data showed continued strength. Or are things actually cooling off and it just hasn’t been reflected in the data yet? Does the U. S. mountain of debt finally, matter meaning rates will continue to climb on the longer end of the curve? Are we way oversold on the long bond and a rally is likely soon (rates dropping back down)? As I said, confusing times.
Have a nice evening everyone.
