Markets sold off at the open over concerns regarding the effects of President Trump’s immigration policies. The Dow closed the day off 122 at 19,971 on heavier trading volume. Several stocks rebounded from intraday lows as some dip buying took place. Oil and airline stocks were lower while gold and department store shares were higher. IBD has markets in rally mode but today’s higher volume selloff might indicate that policy risks could put a damper on things.
Peter Boockvar, Chief market analyst with the Lindsey Group, sums it up well when he wrote in a note to investors that while he is enthusiastic about regulatory relief and jobs, he is worried about trade and immigration issues. The Federal Reserve has its first meeting this week to discuss interest rates but as of now the expectations of a rate increase at the meeting are a lowly 4%.
In economic news, pending home sales in December rose 1.6% while personal income rose 0.3% coming in just below expectations.
WTI crude oil finished the day down about 1% to $52.60 per barrel. Gold was up $5.80 an ounce to $1,196 as immigration policy risks sparked the uptick.