Friends
Stocks were minding their own business, flipping back and forth between positive and negative territory, when at midday a report surfaced that the already beleaguered Deutsche Bank was experiencing what some might characterize as a run on their bank. Rumors that trading partners were beginning to back away and trading firms were severing their prime broker relationships, sent stocks tumbling as much as 250 Dow points. As the afternoon wore on stocks did recover some but the damage was done.
By the close, the Dow Jones Industrial Average was down 195 points to finish the day at 18,143. The S&P 500 was down 20 points to close at 2151. Gold was up a fraction to trade at $1,324 per ounce, while oil was up $.65 to trade at $47.70 per barrel WTI.
The revised GDP number that we got this morning actually was a little bit of a positive to get the trading day started this morning, but as I mentioned the Deutsche Bank news was the catalysts that sent stock tumbling. That Deutsche Bank is having problems is not new, but we are so scarred from the 2008 financial crises, that whenever there is even a whiff of those days, markets react. Let’s see how the week and the quarter finish up tomorrow.
Have a nice evening everyone.
