The markets were lower on the day as investors responded to the latest round of earnings as well as comments out of the White House that the President wanted lower rates. The Dow 30 closed lower on the day by 134, the S&P 500 sold off 11, and the Nasdaq 100 closed down 29 as tech stocks continued to pause at highs.
As of now, 12.8% of the S&P 500 has reported earnings, showing just about 21% earnings growth. Wall Street is expecting 20% revenue growth. 85% of the companies that have reported so far have beat expectations.
Sector News:
Financials (XLF ) were lower on the day as the banks took a break from their recent push higher. American Express was one of the culprits as they reported earnings. Since hitting a low back on June 28 the XLF has managed a steady rally of 5%.
Utilities (XLU ) was one of the better performing sectors today as rates pushed a little lower. The President commented about not liking higher rates which investors took as a signal to the Fed Chairman to ease up on current monetary policy.
The lower rates today also helped real estate recover from it's recent slide. The sector has been in a short downtrend for two weeks now but today's reversal caused the bulls to come running back.
Gold (GLD ) fell rapidly this morning, pushing ever closer to the $1200 level as a report of open interest hit the media which showed that many traders are also looking for the same level for support.
Stock News:
eBay (EBAY ) shares fell about 9% today despite the company posting earnings and revenue that were mostly in line with expectations. Investors responded to the company statement on full year forecast as they continue to "revamp their e-commerce platforms." Shares are down about 9% on the year.
American Express (AXP ) shares were lower by 2.5% today, holding back the Dow as the company reported earnings which showed a small uptick in expenses related to their credit card rewards program. Shares remain in a range that technical traders are waiting for to breakout.
IBM (IBM ) shares were higher on the day and were the biggest gainer in the Dow after the company beat earnings expectations for the previous quarter. Revenue also came in better than expected. Shares are still lower by about 3.5% on the year.
