We have been seeing several cases of stocks priced for perfection suffering sell-offs despite what seems to be decent, if not good earnings reports. We suspected that this might occur this earnings season. Dow components Johnson & Johnson , Verizon, General Electric and others have all been met by selling pressure after delivering earnings beats. So far, and it’s still early, but the banks seem to have been the most reasonably priced shares entering earnings season.
As for today, the top-heavy Dow was pressured by a few stocks causing the average to lose 44 points for the day, to close at 16,414. The S&P 500 was up 5 points to finish the day at 1843. Gold was down $10 to trade at $1241 per ounce, while oil was up $.62 to trade at $94.99 per barrel WTI.
It has been a sloppy start to the year, as the bulls have seemed to run into a roadblock, but the bears are having trouble claiming victory as of yet. Despite the majority of negative trading days, the S&P is only down a handful of points. With the snowstorm in the east, trading may be light tomorrow, but we’ll continue to see how the earnings season plays out.
Have a nice evening everyone.