As we suspected, the volatility continues, as today stocks reversed an early rally and spent the remainder of the trading session in decidedly negative territory. The early read on corporate earnings seems to be that companies are still finding ways to bring profits to the bottom line, but it is getting more and more difficult to do so.
As for today’s action, by the close the Dow Jones Industrial Average was down 85 points to finish the day at 17,949. The S&P 500 was down 3 points to close at 2097. Gold was up $7 to trade at $1200 per ounce, while oil was down $1.12 to trade at $55.58 per barrel WTI. The Nasdaq bucked the trend as it showed gains for the day.
As expected, the dollar is acting as quite a headwind for multi -national corporations with sales overseas, but some companies are dealing with it better than others. We have seen mixed reaction to lukewarm earnings reports which tells us that some were priced into the shares of the companies reporting and some were not. We’ll see how this plays out over this week and next, but my guess is that “mixed” is going to be the operative word. Settle in for some more volatility.
Have a nice evening everyone.