Stocks take a sudden turn to worse: Dow down 300 points
There were no major income or financial reports that came out. Yes, there was a large decline in construction costs for December. But it was mostly expected. And it was an "old" report whose liberation was delayed by the government's suspension.
Nevertheless, Dow, up to 130 points shortly after the market opened, was down 400 points by mid-afternoon before recovering a bit.
Paul Nolte, a portfolio manager with Kingsview Asset Management, told CNN Business that he believes investors are getting tired of talking about an upcoming US-China trade agreement and want more details.
"This is, what is the 38th time that we are" close "to a trade agreement?" Nolte quipped. "You can only cry wolves so many times. We need something more tangible than we are close to."
Mike O & # 39; Rourke, marketing director with JonesTrading, told CNN Business he agreed. He said investors can only be looking for an excuse to sell considering that Dow, S & P 500 and Nasdaq are all sporting double-digit percentage gains this year.
"We've stepped up the opportunity for a deal, but now that the finish line is in sight, people are selling the news," said Rourke, adding that a withdrawal is healthy since the last couple of months. was atypical. "
The market glass is a lot of ado about nothing
But Steve Chiavarone, global allocation portfolio manager and equity strategist with Federated Investors, said the sharp downturn Monday is confusing because most of the financial headlines are still good. He said Monday's sales were just "noise".
He pointed out that bond yields have retreated now, so it appears that the Federal Reserve will not raise prices again this year. The fourth quarter result was largely solid. And if the commercial war ends, the picture of profit can be improved.
In addition, economists expect another solid month of growth in their jobs when the February employment report is released on Friday.
Others argued that investors are only growing nervously for technical reasons, namely that some of the major market indices recently peaked around the number of milestones, such as the Dow junction 26,000 and S & P 500 passing 2,800.
"We've tested some of these October and November heights," said William Delwiche, investment strategist with Baird. "It's purely technical, and that's probably why we started to see a small loss of momentum."
But William Lynch, investment director at Hinsdale Associates, summed up the mysterious dinner, moving best.
"I have no idea why the shares fell. I have no idea. I'm as confused as you are," he said.
Sometimes stocks just go down, especially after they have had a strong run. It's as simple as that.
