Stocks pulled back on heavier volume with the Dow falling 84 points to close at 18,168. The NASDAQ was also lower and trading volume was higher too. Analyst call this a “wait and see” market where investors are reacting to a trifecta news including interest rate rumors, tidbits about the economy and mudslinging by the politicians ahead of the presidential election.
The big story today was the drop in gold prices. Gold had been trading in a range of $1,320 to $1,350 but today the US dollar spiked on favorable US economic data coupled with a big slide in the British Pound sending gold down $41 per ounce to close the day at $1,271 an ounce. This is the lowest level since the Brexit vote. Gold was also affected by a Chinese holiday which will put a damper on gold purchases in the Asian region until Oct 9th.
One sector that appears to be holding steady is the US banking sector. US banks, while still under pressure from new bank rules, are sitting on record reserves and will benefit from a rate hike should it happen. Across the board today the big US banks all posted gains and ran counter to the general direction of the markets. This trend bears watching.