Major averages managed to recover from an early morning sell-off to finish lower though near the tops of their trading ranges. Volume was lower and below average.
Concerns that the "Trump Dump" was beginning echoed throughout the day. Indeed, many favored industry groups that have risen sharply since the presidential elections have been trading sideways. Steels got hit hard as did some bank stocks in yesterday's trade.
“The Trump rally has exhausted itself, and it’s natural to see a pullback after a strong advance,” said Joe Saluzzi, partner, co-head of Equity Trading at Themis Trading. “Investors are probably repositioning and getting ready to hear from companies as earnings season begins.”
Today, Banks dominated the earnings front. At the time of this writing, Bank of America and Wells Fargo are both down slightly after disappointing results while JPMorgan Chase, BlackRock, and PNC are all up slightly, after reporting better-than-expected earnings.
December producer prices increased 0.3%, in line with estimates while core producer prices increased 0.2%, above consensus of 0.1%.
Futures were slightly weaker on the news but have since recovered.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.