Markets were quieter than a FedEx jump seat passenger below 10,000. Stocks traded in mixed fashion as the Dow gained ground while the S&P 500 and NASDAQ fell on profit taking. At the close the Dow was up 22 points to 25,974. Trading volume was much higher than prior day activity. Banks did well as did material stocks. Tech stocks however pulled back with Netflix leading the charge lower and Tweeter getting whacked as tech executives were called for hearings on Capitol Hill. Both BTS and IBD indicators are positive for stocks.
Emerging markets continue to trade lower along with emerging market currencies. The selloff in this sector is affecting Europe and China more than the US and pushed the Shanghai exchange lower by 1.6% and the Hong Kong Exchange lower by 2.6%. Chinese markets are off 20% year to date. Meanwhile all major European markets were off by a percentage point or more as they have more exposure to Turkey and Iran.
WTI crude oil retreated from yesterdays “storm surge” and closed about 1.7% lower at $68.72 thanks to a milder Hurricane Gordon than what was originally projected. Damage to rigs and production was minimal and focus in the oil patch will now shift to global demand issues.
Question: How do you fix a tuba? Answer: You use a tuba glue! ha-ha