The markets were lower today, with many technical traders noting a technical resistance area on the broad-based indices, as well as the individual sectors. The Dow 30 closed lower on the day by 86, the S&P 500 sold off 13, and the Nasdaq 100 closed down 65.
Earnings will be the major focus (aside from the ongoing government shutdown) this week, as the big banks are due up to report. Tomorrow JP Morgan (NYSE: JPM) and Wells Fargo (NYSE: WFC) report, along with two airlines: Delta (NYSE: DAL) and United Airlines (NYSE: UAL). JP Morgan has a strong history of beating on earnings, reporting a beat 83% of the time, while Wells Fargo only beats 52% of the time.
Sector News
Utilities were a weak spot today as the news of the PG&E bankruptcy and CEO departure sent utility stocks lower. The sector is currently trading near the lows of its 6-month range.
Healthcare was lower on the day as well. Technical investors note the recent resistance of the 200-day moving average as a temporary stopping point for the sector. The recent rally off lows has added over 7%.
Banks were higher on the day today thanks to a positive response to the start of earnings season. Citigroup reported earnings which helped the overall sector, but investors know that the earnings cycle is just beginning.
Stock News
PG&E (NYSE: PCG) was one of the big headlines today as the CEO has stepped down. Shares sold off almost 50% today as the company announced they would file for bankruptcy reorganization in a few weeks as liabilities mount.
Citigroup (NYSE: C) shares were higher on the day as the company was the first bank to report earnings. Earnings beat expectations thanks to cost-cutting and lower loan losses, but revenue missed by $500 million thanks mostly to trading revenue declines.
Lululemon (NASDAQ: LULU) shares were higher today as the company raised their full year earnings and revenue guidance thanks to stronger sales momentum. Shares have now recovered about half of the October-to -December selloff.
Newmont Mining (NYSE: NEM) was in the news today as the company announced they will be acquiring Goldcorp (NYSE: GG) for a total of about $10 billion.