Stocks had their worst day of trading for some time today. The reasons varied from the selloff in the bond market (with the 10 year rate rising to 2.73%) to the healthcare initiative announced by Amazon, Berkshire Hathaway, and J P Morgan Chase. Of course, the President’s first state of the Union address tonight might have given the bulls pause too. Whatever the reason, stocks slumped for the second straight day.
By the close, the Dow Jones Industrial Average was down 362 points to finish the day at 26,076. The S&P 500 was down 31 points to close at 2822. Gold was down $5 to trade at $1,339 per ounce, while oil was down $1.17 to trade at $64.39 per barrel WTI.
Earnings actually continue to be good, but today that didn’t matter. Yes, earnings matter but after a parabolic move to the upside it’s never surprising to see stocks sell off. Actually, I would be worried if they didn’t take a pause so this week’s disruption is not only expected, but welcomed. Sentiment needs to be cooled down a bit. Anyway, enjoy the show tonight. It should be fun.
Have a nice evening everyone.