Just more of the same, as Monday’s trading was reminiscent of the past couple of weeks. Both the Dow and the S&P spent time in both positive and negative territory throughout the day, but by the close, the bulls had succumbed to the bears’ pressure. The market averages have experienced their worst 3 day run since 2011. The feeling is somewhat ominous right now, as continued worries of global economic slowdown are combining with concerns about rumored and/or real Ebola cases. As stocks fall, we are seeing technical support levels being violated, which cause more selling.
By the close, the Dow Jones Industrial Average was down a hefty 223 points to finish the day at 16,321. The S&P 500 was down 31 points to close at 1874. Gold was up $12 to trade at $1231 per ounce, while oil was down $.67 to trade at $85.15 per barrel WTI.
Perhaps a string of positive earnings reports could brighten the mood over the next week or two, but my feeling is that the Ebola worries are what is weighing heavily on these markets. A slowdown in Europe or even a lukewarm domestic economic data point would be a concern, but one that can be measured. The effects of a global Ebola scare would be very difficult to quantify at the moment. In the long term scheme of things, these are likely overreactions, but in the moment, they cause concern. Let’s see if market participants can redirect their focus to earnings as the season unfolds.
Have a nice evening everyone.