Stocks pulled back on heavy volume as the recent rally appears to be running out of steam. At the close the Dow fell 37 points to 18,495 on heavy volume. Energy stocks led the field lower as oil prices slumped.
The Middle East “pump fest” continues as Iran and Saudi Arabia continue to crank out the oil and discount the price to big Asian customers. This is offsetting production cuts by US producers and as a result WTI crude fell 3% to $41.47 per barrel.
Disney reported earnings that were 12% above a year ago while revenue gained 9% thanks to a fish named Dory, some super hero’s having a friendly and an orphan raised by wolves. Disney’s numbers beat street estimates and the stock closed higher. The company also announced an investment into an online MLB streaming company. The gurus are positive on Disney which is still trading 20% below its all-time high.
Gold was up today as the latest US productivity survey showed a surprise dip. Gold gained $5 plus an ounce to $1,352. Another source of support for gold could be coming from recent reports that Deutsche Bank might be ripe for a gubment takeover as a rising chorus of analysts are concerned about pressure on the bank in the face of European financial stress which could be too much for it to bear. I am watching this drama unfold with interest or in the case of Germany…..negative interest. (HaHa).