Friends,
Stocks had their worst day of the year after disappointing earnings from a couple of big tech growth giants, namely Google and Tesla. The market averages opened lower and only got worse throughout the trading session.
By the close, the Dow Jones Industrial Average down 504 points to finish the day at 39,853. The S&P 500 was down 128 points to close at 5,427. The Nasdaq Composite Index was down 654 points to close at 17,342. Gold was down $4.80 to trade at $2,402 per ounce, while oil was up $.73 to trade at $77.69 per barrel WTI.
We’ve mentioned over and over that conditions were good for stocks in the first half of the year but valuations were stretched. When valuations are stretched earnings need to exceed expectations. We still have many big names left to report, but a lackluster earnings season and continued deterioration in economic data could lead to the Fed easing monetary policy sooner than later. Stay tuned.
Have a nice evening everyone.
