Friends
As oil cascaded below $50 per barrel WTI and European stocks tumbled, U. S. stocks came under intense selling pressure as the first week of 2015 trading began. As one would expect with oil falling, energy names led the carnage to the downside. As we have indicated for some time now, falling energy prices is somewhat a double edged sword. Yes prices are down at the pump, which helps main street consumers, but the negative effects on Wall Street are becoming evident (not to mention the negative effects here in our hometown).
By the close, the Dow Jones Industrial Average was down 331 points to finish the day at 17,501. The S&P 500 was down 37 points to close at 2020. Gold was up $21 to trade at $1207 per ounce, while oil was down $2.80 to trade at $49.90 per barrel WTI.
As we enter 2015, interest rates continue to remain low with bond yields actually falling, the dollar continues to be strong (as we end QE while others embrace it), and the word deflation is once again upon the lips of market prognosticators. As always seems to be the case, the bulls will have a lot to navigate to get the market on a positive track as the new year begins.
Have a nice evening everyone.
