Stocks fell on higher volume after the Senate delayed the healthcare vote. At the close the Dow was off 98 points at 21,310. The NASDAQ also fell on lighter volume. Tech stocks fell while banks continued to rally. IBD has the market still listed in rally mode and the BTS indicator continues to be positive.
Federal Reserve Chair Janet Yellen spoke in London today and in an exchange with Lord Nicholas Stern, President of the British Academy, she cited the “very” strong capital positions of the major banks after all these firms passed the stress test this year. Then she boldly predicted that an event similar to the 2008 financial crisis will not likely happen “in our lifetime”. This quickly brought up the reminder that prior to 2008 Fed Chair Ben Bernanke stated that rising subprime mortgage defaults was not a problem. While anything is possible, the fact that US banks are sitting on over $2 trillion in excess capital is comforting.
Oil prices were up a bit. WTI crude traded up 1.9% to $44.22 per barrel. US inventory readings will be out soon and traders are expecting a drop in stockpiles.