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.
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