Stocks Hit By Global Worries
U.S. stocks declined today, with the Dow Jones Industrial Average dropping over 200 points, as worries mounted about China’s economy and escalating tensions in Ukraine.
And, Reuters cited banking and industry sources in reporting increasing concerns about the financial health of bloated industries in China have caused many banks to reduce lending in these sectors up to 20 percent.
Alan Skrainka, chief investment officer at Cornerstone Wealth Management, pointed to a chart making the email rounds showing the correlation between NYSE margin debt and the S&P, with margin debt exceeding its 2007 peak.
In Washington Thursday, U.S. Secretary of State John Kerry told a Senate panel told the U.S. and Europe would take “very serious” action after the vote this weekend on whether Crimea would leave Ukraine if there is “no sign” that the crisis would be resolved.
Also on Capitol Hill, Stanley Fischer, nominated to serve as vice chairman of the Federal Reserve, told the Senate Banking Committee the central bank has to conform to market responses as it reduces stimulus
Ahead of the open, stock-index futures added to gains after the Commerce Department reported retail sales gained 0.3 percent in February after a 0.6 percent decline the prior month, with the latter figure bigger than initially estimated.
Another report, this one from the Labour Department, had applications for jobless benefits unexpectedly declining last week, by 9,000 to 315,000.
A third economic report Thursday had business inventories rising 0.4 percent in January, in line with expectations.
Friday: 8:30 a.m.: PPI, 9:55 a.m.: Consumer sentiment, 9:45 p.m.: Dallas Fed President Richard Fisher
News Sources: CNBC and CNN Money
My Market View:
No real Reason for a market sell off today. My only conclusion is that after such a high and fast spike since the beginning of February, investors are getting jittery around headline news from Russia to Chinese Data. The Truth is that the market had to roll over after such a big spike, the issue, as always is timing your exit, but these roll overs are necessary so that the market can go higher. I expect to see a recovery soon, possibly even tomorrow or early next week.