Friends
Well, well, volatility has returned. For about 5 months we had nice deliberate upward bias to stocks. Things seem to have changed just a bit. Down big on Monday, up big yesterday, and back down big today. Yes, we did recover some, as the Dow was down almost 200 points in early morning trading. After the Fed beige book indicated that economic activity wasn’t quite as bad as we have been assuming lately, stocks did rally just a bit, but all in all, this week has been difficult for shareholders so far.
For the day, the Dow Jones Industrial Average was down 138 points to close at 14,618. The S&P 500 was down 22 points to finish the day at 1552. Gold was down $14 to trade at $1373 while oil continued to dive as WTI was down $1.97 to trade at $86.75.
Reports of possible arrests in the Boston bombing incident also had an effect on stocks. Be advised that market movements will be subject to headline risks over the next few days. Is this the correction that market mavens have been predicting for a couple of months now? We’ll see if the slide continues or will bargain hunters once again step in and buy. All of sudden things that have not mattered for the past few months seem to matter now. Let’s continue to watch as corporate earnings are announced. Were shares priced correctly? We’ll see.
Have a nice evening everyone.
