Oil-Related Shutdowns Spreads Across All Industries
Today's financial recap and tomorrow's financial outlook.
Gold was the largest standout because it reversed by $80 (or about 6.5%) from its overnight low to its high. The Swiss referendum to return all foreign-held gold to the country and force the Swiss National Bank (SNB) to hold 20% of its currency reserves in gold was decisively voted down. The final vote tally saw a 77% to 23% margin for a "no" vote.
The S&P 500 (SPX) started weak and ended that way as the financial and energy sectors, and their tertiary industries, were the biggest drag on the major indices. Other transports stocks that produce oil tanker equipment, such as Greenbrier (GBX), also suffered major losses in today's session. Apple's (AAPL) 3.5% reversal was also the cause of the drop in equity prices as it has been the poster child for the latest rally. Recent chip production estimates were reduced significantly as holiday sales fell short of expectations.
The national ISM manufacturing index declined less than expected to 58.7 as most of the orders and production components remained strong for a second month. However, the substantial drop in the prices paid component put many market participants on edge. Prices paid dropped down to 44.5 from 53.5 in the month prior, which embodies the major drop in commodity prices over the last two months.
Tomorrow's Financial Outlook
Tomorrow there will be very little economic data in the US, as it normal during the week that the government payrolls report is released. October construction spending and November auto sales will be released tomorrow. Market participants will also be watching to see the results of Cyber Monday sales.
Overnight, the Reserve Bank of Australia (RBA) will make its monthly rate decision. Although it is not expected to cut rates at this meeting, the drop in commodity prices lately has spurred speculation that it has the proper cover to do so in the future because it feels that the price of the Aussie dollar (AUD) is too high. The AUD has dropped substantially in recent months in line with the declines in copper and iron ore.
There are no major earnings reports scheduled for tomorrow in the US.
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter