Stocks today pulled back on political news. The markets have been immune to the political rhetoric so far but the most recent Trump/Comey news regarding the FBI’s investigation into Michael Flynn back in February sparked the selloff on fears it could slow down or potentially halt tax and regulatory reform as well as infrastructure spending. Investors rushed to lock in gains and banks were hard hit as fears that proposed regulatory relief might not happen. Industrials fell in like manner over potential infrastructure delays. At the close the Dow fell 372 points on heavy trade to close at 20,606.
Two restaurant stocks (aka “hamburger joints”) today reported earnings that beat estimates by a mile. Red Robin and Jack in the Box both posted solid numbers sending shares higher. Red Robin in particular was up nearly 18% as the company’s 4% revenue gain caused an acute case of indigestion amongst short sellers who had built a massive short position in the company. The shorts will most likely be hitting the bottles of Pepto Bismol after markets close.
Gold prices rose due to the political turmoil and a falling US dollar. The shiny yellow stuff closed the day up $22 an ounce to $1,258. Bond prices were higher and US Treasury yields fell with the 10 year yield dropping to 2.23%.