(As of 7:55 am PST)
Stocks are sharply lower this morning with US market
indexes on pace for their worst January since 2010. The selling came amidst several disappointing
earnings reports and fears over deflation in Europe. Despite positive consumer spending data, which
showed consumers spent more in December than forecast, markets continued to
slide. Disappointing consumer sentiment
in January and a drop in the Chicago PMI added to the downward pressure. Some big earnings misses also grabbed
headlines. Most notably was yesterday’s miss from Amazon in the after
market. The Seattle-based company
reported sales rose by 20% during the holiday season, but the number was just
shy of analysts forecasts. And… as we
often see during earnings season, if you don’t beat you get beat up. That’s exactly what happened to Amazon. Shares are down 8.5% this morning. Gold isn’t adding much diversification, with
the precious metal only up $3 per oz.
Interest rates are lower on a “flight to safety” and the US dollar is
up. It’s definitely a risk off day with
stocks heading toward the single worst month since May 2012.
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