Friends
Stocks fell for the 4th day in a row, and the sell-off keeps getting a little worse each day. The culprit today seemed to be the mixed signals that we have already gotten at the beginning of earnings season. We had a couple of early beats by the likes of YUM brands, but warnings from Chevron and Cummins Inc. seemed to put a bad taste in the mouth of traders. Expect this type of anxiety for the next few weeks as it looks like we are going to go company by company as earnings results are released.
For the day, the Dow Jones Industrial Average was down 128 points to close at 13,344. The S&P 500 was down almost 9 points to finish the day at 1432. Gold was mainly unchanged finishing the day at $1765 per ounce, while oil was down $1 to trade at $91.38 per barrel WTI. Needless to say, the S&P 500 did not hold 1441 but it did bounce off 1429, another support level. Nevertheless, it is hard to find a silver lining in 4 straight down days.
We’ll continue to monitor corporate earnings as they are released, but expect the market to be sensitive to any additional signs of weakness or guiding down of future expectations by these companies.
Have a nice evening everyone.
