After the S&P 500 hit a high of 1426 traders took the opportunity to lock in gains and thus we saw markets reverse. The previous high was 1423 which was reached on May 15th 2008. Don’t be surprised to see further downside risk before we eventually head back up. A 5% correction would seem rather healthy at this point.
Keep your shopping list ready and when specific stocks on your list get hit 5-10% then begin to buy back into the positions. We most likely will see at least two or three volatile waves before the end of the year creating opportunities to buy low and sell high. 1385 looks to be a key level to be tested on the S&P 500.
Shares of Best Buy (BBY) declined after missing expectations and investors did not cheer the new hire of Hubert Joly as the CEO.
Dell (DELL) topped EPS estimates but lowered its guidance causing shares to fall in after hours.
Urban Outfitters (URBN) rose 18.22% after beating earnings expectations.
Facebook (FB) fell again today and will remain under pressure until the next lockup period in November. Shares closed at $19.16 down 4.26%.
Baidu (BIDU) fell 5.74% today on no specific news, most likely tied to the Apple (AAPL) trade today which saw investors lock in gains after Apple hit a new all time high.
The DOW (INDU) lost 68.06 points at -0.51%. The Nasdaq (COMP) fell 8.95 points at -0.29%. The S&P 500 (SPX) lost 4.96 points at -0.35%.
Oil gained 71 cents to close at $96.68 a barrel.
Gold rose $19.90 to close at $1,642.90 an ounce.
The 10-Year Note rose pushing the yield down to 1.82%.