[Chart courtesy of MarketWatch.com]
- Moving the Markets
US oil got spanked again at the tune of -2.19% on top of yesterday’s 3.85% loss, hurting the energy sector and negating advances in the financial and healthcare arenas. The S&P was unchanged, but the Nasdaq managed to buck the trend again by advancing +0.36%.
Midday, it looked like the Dow might be successful with another attempt to conquer the 20k level by reaching 19,950, but selling pressure set in and down we went. I suspect that we may see more of this aimless meandering as traders are awaiting earnings season, and the January 20th inauguration, to get a better sense as to not just how but if Trump’s ambitious economic plan plays out as advertised.
In other words, the post-election exuberance has reached an end, and Wall Street appears to have settled into a wait-and-see mode before pushing the indexes further into bubble territory. Any suggestion that earnings are not what was expected, or Trump’s plans are not executable within a reasonable amount of time, and we’ll undoubtedly see a negative reaction in equities.