Another day of earnings releases, and another difficult day for stocks. Yes, there are a few winners day to day, but for the most part traders seem to be firmly in “sell the news” mode. Today saw continued weakness in industrials and energy, and utilities had a dreadful day too. Commodity prices, including oil, continue to decline, so the “deflation” hawks are out in full.
By the close, the Dow Jones Industrial Average was down 119 points to finish the day at 17,731. The S&P 500 was down 12 points to close at 2102. Gold was down $4 to trade at $1086 per ounce, while oil was down $.52 to trade at $48.67 per barrel WTI. As commodities continue to fall, interest rates are also, as the 10 year Treasury note traded at a yield of 2.26%, down from over 2.30% yesterday.
As a market observer, generally one would have to conclude that stocks were overpriced heading into this earnings season. It’s true that we are only about half way through this earnings season, so maybe it can turn around, but to date only select names seemed a good value. Let’s see how the week ends tomorrow.
Have a nice evening everyone.