Wednesday, October 25, 2017
Dow falls by triple digits as stocks retreat on a string of disappointing earnings
The stock market has taken a hit following a period of high performance. Declines in major bench marks like the Dow Jones and S&P 500 are largely due to weaker than expected earnings in telecoms and industrials. Although this sounds bad, analysts believe “Markets have outperformed over the past several weeks and have been overbought. We would not be surprised to see a mild pullback as people take profits.” Despite the tough market conditions, other aspects of the economy appear to continue their growth. Durable goods, along with new home sales all destroyed the MarketWatch expectations. One thing that will be interesting to see is the impact that the new Fed boss has on the market.
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I agree especially since Mr. Trump is planning on appointing someone to the Fed that will deregulate the economy and go against the current conditions. I think that it will be very interesting to see how the market responds to Trump's decision on the new Fed chair.
ReplyDeleteWith earnings being down for numerous companies, it's no shock their stock value has sharply decreased. The economy is still humming along, so this sign of volatility is nothing people should be too concerned about.
ReplyDeleteI am not too certain that deregulation is what our economy needs for enhanced growth. While on the topic of volatility, despite the ups and downs; small caps have outperformed all other investments since 1920.
ReplyDeleteThe release of company's third quarter reports can trigger the decrease in the stock market. If investors originally believed a company was going to be more profitably and they see their actual reports don't shine like they anticipated, the investors get out and go find somewhere else to invest. With some big company's in each sector under performing a big decrease in the stock market is a reasonable thing to see. The stocks will eventually go back up because over the long run the stock market always goes back up so there is no need to worry about investments in the long run
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