The markets sold off a little more today as overnight news of a reduced growth forecast from the European Central Bank confirmed concerns about a slowdown in the EU. The ECB announced a new round of cheap money for banks and held interest rates unchanged, which sparked the decline overnight. The Dow 30 closed lower on the day by 202, the S&P 500 sold off 22, and the Nasdaq closed lower on the day by 84.
Sector News
Metals and mining stocks sold off again today. They're now lower by about 8% since hitting a high back in late February. Technical traders note the pullback to the 50-day moving average and ponder the potential of short-term support.
Gold miners (GDX ) were one of the leading areas today as potential deals between the two largest holdings in the ETF continue to receive investor speculation. Barrick Gold (GOLD ), which is 11% of the sector ETF, enjoyed a strong day today.
Transports (IYT ) continued their string of selling days today as the sector continues to suffer steady losses. Just this week the sector has lost over 3% and is rapidly approaching the 50-day moving average.
Stock News
American Eagle Outfitters (AEO ) shares were lower on the day despite the company reporting earnings that came in better than expected. The company reported revenue that was less than expected along with weaker profits in the current quarter, which investors chose to focus on. The company cited increased spending on opening new stores and marketing as the reason for the miss. Shares have remained in a range between $20 and $22 so far this year.
Kroger (KR ) shares sold off hard today as the company reported a rare earnings miss. The report also included a revenue miss thanks in part to slowing sales. Investors also focused on lower guidance going forward. This came as a bit of a shock to investors as the company has beaten on earnings 68% of the time and revenue 63% of the time over its lifetime. Shares of the nation's largest operator of traditional grocery stores fell to 9-month lows.
Barnes & Noble (BKS ) shares sold off double digits today despite the company reporting earnings that beat by 14 cents. The company saw revenue decline along with operating profits. Forward guidance did not impress investors. Shares are now lower by about 30% on the year.
