Stocks meandered around for most of the session today, staying just barely in negative territory most of the day. Then in the last 30 minutes of trading, the selloff got some legs and the averages closed pretty close to the lows of the session. The Dow fell 66 points, while the Nasdaq and S&P 500 fell 17 and 10 respectively.
Financials were the leaders to the downside today as more questions about their ability to be profitable in the tough credit environment were raised. The brokerage stocks were the weakest of the financials as an analyst downgraded the group. Bear Stearns (NYSE:BSC) lost 4.87%, though the volume was not particularly strong. Goldman Sachs (NYSE:GS), the strongest performer in the group of late, plunged by 5.14% on the day. American Express Company (NYSE:AXP) shares lost 2.54% and Mastercard International (NYSE:MA) fell 3.02% as the consumer financial service area was hit pretty hard today. IndyMac Bancorp (NYSE:IMB) and Washington Mutual (NYSE:WM), two of the hardest hit by the mortgage woes, were trashed today, losing 10.54% and 5.86% respectively.
Homebuilders have been hit harder than anyone over the past year and today was another bad day for that group. Lennar Corporation (NYSE:LEN) lost 5.56% on heavier than average volume. D.R. Horton (NYSE:DHI) lost 2.59% on the day. Other companies that count on homebuilding for profits saw sizable losses today as well. Masco Corporation (NYSE:MAS) shares lost 2.66% today. Black and Decker Corporation (NYSE:BDK) lost 1.44% on the day.
Most retailers were actually higher today as some investors scooped them up on the belief that these retailers are currently undervalued. Kohl's Corporation (NYSE:KSS) shares rose by 2.76% today. Macy's Inc. (NYSE:M) gained 2.62% on the day. Nordstrom (NYSE:JWN) was the real standout in the group, gaining 7.02% on strong volume.
The markets are clearly in a wait and see mode right now, waiting patiently for Friday's much anticipated employment report. The employment report is likely to ramp up the volatility in the market in a big way. The volume has been relatively weak both yesterday and today as the Nasdaq is just barely getting over 2 billion shares traded daily and the NYSE is staying around 1.3 billion shares traded.
Next week the Federal Reserve will meet again to decide the future of interest rates. It is safe to say that though most of this week will likely be less volatile and more quiet than normal, the complete opposite will be true next week.
It is likely that no new trends will be started in this market until there is a real catalyst, like the employment report or FOMC meeting.
If you enjoyed this article, please signup for the RSS Feed from GrowYourFunds.
Comment Preview