Friends
Stocks tumbled today as volatility seems to be picking up again as we enter earnings season. Today’s action saw stocks give up yesterday’s gains and then some as oil finally weakened a bit while the dollar strengthened. With the political climate getting crazier by the day (but probably becoming more clear), it wouldn’t be surprising to see traders a bit on edge as earnings begin to roll out.
For the day the Dow Jones Industrial Average was down 200 points to close at 18,128. The S&P 500 was down 26 points to finish the day at 2136. Gold was down $4 to trade at $1,255 per ounce, while oil was down $.54 to trade at $50.81 per barrel WTI.
Again, with many stocks at lofty valuations, this could be an anxiety filled earnings season. Many of the defensive, dividend paying stocks are trading at lofty valuations given the fact the investors hungry for yield have bid up their share prices. The challenge will be for earnings to help fill the void between valuation and price. Stay tuned
Have a nice evening everyone.
