Carnage in the markets today. Worries from an Argentenian default and fallout from the Ukraine Crisis. Add in the fact that markets were getting overcooked and this is what happens.
The best thing to do is just get out of the way of it and move to cash and wait for strength. That’s what I’ll be doing!
I really thought we would get another pop towards 2000 this week, but alas it wasn’t to be. I’ve been wrong before, I’ll be wrong again somewhere down the line…NEXT!
Stocks tumbled on Thursday, with the Dow and S&P 500 posting their first monthly drop since January, as investors worried about Europe’s economy, an Argentine default and a jump in U.S. labour costs prompted concerns about corporate margins.
Argentina’s default came as international banks sought a deal that would let the country restart servicing its securities. Argentinian stocks traded in the U.S. were hit, including Pampa Energy.
The Labour Department reported U.S. labour costs rose the most in more than five years in the second quarter, with the ECI climbing 0.7 percent, the biggest jump since the third quarter of 2008.
Euro-zone inflation unexpectedly declined this month, highlighting the European Central Bank’s worries that the region’s economy is not healthy enough to support increased prices.
Hitting its highest level since the middle April, the CBOE Volatility Index, a gauge of investor uncertainty, jumped 22 percent to 16.30.
Market strategists offered differing views on whether a Fed move towards a normalization in monetary policy in the earlier part of 2015 rather than the middle part of the year was a positive or negative for U.S. equities.
Earnings: Procter and Gamble, Chevron, CBOE, Axa, Calpine, Clorox, ArcelorMittal, Weyerhaeuser
Monthly vehicle sales
8:30 a.m. Employment report
8:30 a.m. Personal income and spending
9:55 a.m. Consumer sentiment
10:00 a.m. ISM Manufacturing
10:00 a.m. Construction spending
News Sources: CNN Money & CNBC