The other day it was IBM, UTX and MSFT that weighed on the Dow, today it was CAT, MMM & AXP. The Dow lost 119.12 points, or 0.7%, to 17731.92.
The leadership in this market appears to be somewhat limited in scope which raises the proverbial “red flag” of caution. As I’ve said its not that hard to beat an earnings number because the bar is set so low, but some companies are still managing to do just that.
The good news tonight is that AMZN had a blowout earnings report after the close and is up almost 100 point in after market trading right now. So maybe we’ll see the market elevator back up tomorrow.
Biotech (IBB) continues to act well during this slight pullback.
Gold, gold stocks, miners, energy and materials continue to act horribly and have dropped to multi year lows this summer. Take a look at the chart of crude below. It looks to me that it wants to go down and retest the low $40’s again.
This is why I hate earnings season. All in though, its been a good week and a good month and tomorrow we put the week in the books. I’m looking forward to making a new watermelon Margareta that I’ve recently discovered. Hey, you gotta live.
See you in the morning.