US Stocks Retreat in Healthy Pullback
Friday, the DJIA suffered its deepest 1 day decliner in almost 2.5 years as stocks pulled back on profit taking, some disappointing earnings from big caps and concerns about higher interest rates ahead.
Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Exxon Mobil (NYSE:XOM), and Chevron (NYSE:CVX) fell following earnings, while Amazon (NASDAQ:AMZN) rallies to a new all-time high
In Washington DC, US President Trump authorized the House Intelligence Committee to release a House Intel memo declaring there was an anti-Trump bias at both the FBI and the Justice Department in investigative matters pertaining to Russia’s meddling in the 2016 Presidential election.
The release is receiving some credit for Friday’s sell off given that it creates some political uncertainty in front of next week’s spending deadline.
Congress will have to pass a new spending resolution by 8 February to avoid another government shutdown.
However, I believe all will be resolved in due course.
The CBOE Volatility Index (VXX), aka “fear gauge,” spiked 3 pts, or 22.3% Friday to 16.48–its highest level since November 2016.
Stocks at the closing bell, the DJIA was -2.6% or 665 points to 25,508.91, its biggest decliner in percentage terms since September 2015.
The broad-based S&P 500 -2.2% to end the week at 2,761.27, the tech-rich NAS Comp -2.0% to 7,240.95.
Volume: Trade on the NYSE came in at: 1.2-B/shares exchanged
- NAS Comp: +4.9% YTD
- S&P 500: +3.3% YTD
- DJIA: +3.2% YTD
- Russell 2000: +0.8% YTD
HeffX-LTN over all US stock market analysis is Bullish as the market is still in an up trend.
Have a terrific weekend.
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