Stocks tumbled on “TT” or Tuesday trading to a nearly 4 month low thanks in part to rising uncertainty related to both the election and the economy. Manufacturing was up while construction spending was off and car sales are projected to be lower by 6%. The Dow closed the day down 105 at 18,037 on heavy trading volume. The “VIX” or fear index has risen steadily since last Friday indicating rising uncertainty. Stocks seem to be holding support as tons of cash on the sidelines is often looking for any pullback to find opportunity.
The Institute for Supply Management’s manufacturing survey index showed a steady yet slow pace for the US factory sector. A reading of 51.9 was up four tenths of a point over the prior month and slightly ahead of expectations. New orders slipped 3 points to 52.1 and employment rose from 49.7 to 52.9. Automakers are beginning to ease production rates signaling that manufacturing in the US could remain stuck in first gear for the next few miles.
Gold hit a one month high today rising $15.50 per ounce to close at $1,288. Silver also jumped over 3%. The reason for the jump was election uncertainty coupled with a falling US dollar.