Friends
Stocks were a bit soft today as earnings season kicked off with a couple of large banks reporting. Both JP Morgan Chase and Citigroup had fine earnings reports, but the shares of both banks ended down for the trading session. This is what I have been concerned about as we work our way through this earnings season. Stocks are priced for perfection and even good earnings might not be enough. The key is how these stocks act several days after their earnings release. If the selling is muted and the buyers reappear, then we are likely headed higher into year-end.
By the close, the Dow Jones Industrial Average was down 31 points to finish the day at 22,841. The S&P 500 was down 4 to trade at 2,550. Gold was up $6 to trade at $1,295 per ounce, while oil was down $.64 to trade at $50.66 per barrel WTI.
We get more bank earnings tomorrow and then things really kick into gear next week. Today’s PPI number was on the hotter side, so tomorrow’s CPI number will be one to watch. We’ll let you know how the week finishes out tomorrow.
Have a nice evening everyone.
