Friends
Stocks got off to a great start this morning only to run into massive headwinds as the trading session wore on. First, we have concerns over the mess in the Middle East, then on the economic front we got a hotter than expected retail sales number this morning which adds another economic data point that the Fed has to grapple with. All this good economic news continues to spark inflation concerns sending interest rates higher and throwing cold water on the “Fed will lower rates” scenario. Added to the inflationary mix is the possible continued rise of oil prices and other commodities. All in all, formidable headwinds for stocks. And – here comes earnings season.
As for today, by the close the Dow Jones Industrial Average was down 248 points to finish the day at 37,735. The S&P 500 was down 61 points to close at 5,061. The Nasdaq Composite Index was down 290 points to close at 15,885. Gold was up $27 to trade at $2,401, while oil was down $.18 to trade at $85.48 per barrel WTI.
As I mentioned we will begin to see earnings season come at us in full force over the next few weeks. The recent reset in prices might help provide a better set up than might have been expected just a couple of weeks ago. We will be watching to see how share prices react to earnings releases. Stay tuned.
Have a nice evening everyone.
Jim
