The DOW was hurt today by large declines in DIS after a profit disappointment projection and the potential loss of business at its Orlando, Florida theme park on hurricane worries. In addition, after a one-day upside reprieve, TRV fell down again as Hurricane Irma moved closer. The financials sold off, too. BA was up 1.69 after some recent weakness, MMM was higher, and V and MA made all-time highs today.
At the closing bell, the DOW lost 22 points, the S&P 500 was lower by a fraction, and the NASDAQ gained 4 points.
Bond yields dipped again with the 10-year Treasury Note back down near the yearly lows at 2.05%. The dollar weakened because of lower bond yields and the Euro went over 1.20 again as ECB President Draghi mentioned that stimulus withdrawal could appear in October. Gold was higher at $1,354 an ounce. Crude oil was slightly lower at $49.13 a barrel after its gains this week.
Weekly jobless claims made a large jump of 62,000 up to 298,000. Most of this was Hurricane Harvey-related and it was the highest number since April 2015.
Some stocks reacted to earnings, with beaten-down GRPO doing better and closing up 12% at $10 a share.
Breadth numbers were slightly negative while the VIX stood still at 11.55.
Donald M. Selkin
Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press. These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author.