For stocks, July didn’t end too well, and August didn’t get off to a very good start today either. Overnight stocks finally began trading in Greece after weeks of being halted, and prices promptly dropped 30% (it did recover some). With other overseas markets showing weakness and worries about Puerto Rican debt, the pressure on U.S. stocks kept us in negative territory for the entire trading session. Leading the way was another sizable drop in energy names, but as we have seen in recent weeks, the winners are becoming fewer and fewer, while the number of stocks in correction mode continue to expand.
By the close, the Dow Jones Industrial Average was down 91 points to finish the day at 17,598. The S&P 500 was down 5 points to close at 2098. Gold was down $9 to trade at $ 1085 per ounce, while oil was down $1.70 to trade at $45.42 per barrel WTI.
On the economic calendar this week, today’s ISM Manufacturing number was weak as was the personal income and spending numbers. Construction spending was a bit less than expected, but PMI Manufacturing was ok. As the week goes on we’ll get Factory Orders, ISM non-manufacturing, PMI Services, the ADP employment number, weekly jobless claims, and of course, the non-farm payroll number. We are wrapping up a disappointing earnings season and entering what can typically be a difficult month for stocks. We’ll keep an eye on it all for you.
Have a nice evening everyone.