Most days before I begin to write this email I have a pretty good feel for what happened during the trading session, and what drove the direction that stocks ended up going in. Today, was quite the opposite. Stocks gyrated all day from what looked like a good day for the bulls, then a disaster and then back to a good day. Oil was up big for the session and there were earnings reports to deal with, not to mention economic data and statements from Fed officials. The result was a chaotic trading session that left traders baffled and scratching their heads.
By the close, the Dow Jones Industrial Average was up 183 points to finish the day at 16,336. The S&P 500 was up 9 points (much less percentage than the Dow) to close at 1912. Gold was up $14 to trade at $1141 per ounce, while oil was up $2.43 to trade at $32.31 per barrel WTI.
On the economic front, we get the non-farm payroll number on Friday, but first we got today’s private sector ADP employment number which came in better that expected. The ISM non-manufacturing number (service sector) was weak, as was the PMI Service Index number. Oil got a jolt from vague rumored OPEC action, and of course a day doesn’t pass without some Fed official clouding the interest rate horizon. Oils and Industrials up today, while banks shares continue to dive. Just a strange mix of winners and losers each day, and strange reactions to individual earnings reports. Let’s see how the rest of the week plays out. Maybe some sense will be made of it all soon.
Have a nice evening everyone.