Friends
Was that it? Probably not. Violent market disruptions are kind of like earthquakes-it’s likely we’ll feel some aftershocks. What is interesting is that we keep getting corporate earnings reports and for the most part they have been very good (see Caterpillar and Uber today for example). Yes, I know the big seven tech/growth names saw share declines after their earnings releases, but they were mostly all priced for perfection. The rest of the S&P 500 companies were not. Anyway, we saw some recovery in the market averages today and investors seemed calmer.
By the close, the Dow Jones Industrial Average was up 294 points to finish the day at 38,997. The S&P 500 was up 53 points to close at 5,240. The Nasdaq Composite Index was up 166 points to close at 16,366. Gold was down $15 to trade at $2,429 per ounce, while oil was up $.25 to trade at $73.19 per barrel WTI.
Market participants are still going to worry that the Fed is behind the curve and that the likelihood of the economy moving toward recession is climbing. Between now and the next Fed meeting in September we will get a lot of data. So, despite a good earnings season, economic data is likely to drive the markets. Even today’s rally faltered from the highs of the day, so let’s buckle up and be ready for some heightened volatility in the coming weeks.
Have a nice evening everyone.
