Buy Stocks: Dow Jones Makes 100-point Decline as Bank Drops
On Thursday, the Dow Jones Industrial Average made a 134.79 points decline and end at 25,064.50. Dow’s decline is along with American Express lagging and Travelers Cos. Meanwhile, the S&P 500 got a 0.4% to 2,804.49 drops with financials making a 1% decline. Further, the Nasdaq Composite bounced back 0.4% to 7,825.30.
The decline in stocks occurred amid President Donald Trump’s criticism on Federal Reserve. In a CNBC interview, Trump said that he was not pleased on Fed’s hike on interest rates.
“Because we go up and every time you go up they want to raise rates again. I don’t really — I am not happy about it. But at the same time I’m letting them do what they feel is best,” Trump said.
Tower Bridge Advisors President Maris Ogg said that the market will ignore it because Fed Chairman Powell will ignore it.
“He’s a real estate guy… he’s going to think rates going up are a bad thing no matter what,” she added.
This year, Fed officials have already increased interest rates for two times. Furthermore, Powell highlighted that there will raise rates again for two or more before the year ends.
Meanwhile, Prudential Financial Chief Market Strategist Quincy Krosby hoped that if President Trump will actually call Fed Chairman Powell.
“Many commentators have suggested early on – as it became clear that the Fed, under Chairman Powell was intent on normalizing rates whether it was going to be two rate hikes or four rate hikes – this what the intention of the Fed as, on the whole, conditions are positive for raising rates and while the underlying economy is still strong,” Krosby added.
The Citigroup, Morgan Stanley, Morgan Chase, JP Morgan and Bank of America made an above 1% decline. Hence, this caused Bank shares to have a broad drop. Further, their drops placed Financials Select Sector SPDR to go with a 1.5% decrease. The 10-year Treasury note yield garnered a 2.83% decline.
Buy Stocks: US stocks slips on declining consumer products, banks
BUY STOCKS – On Thursday, US stocks slipped as banks and consumer product companies generated weak results thus dragged major indexes lower. The eBay jumped after its decline in sales in the second quarter. Meanwhile, Comcast increased after making an end to its bid in buying most of Twenty-First Century Fox.
The auto industry representatives will testify on Congress. This is concerning about Trump administration’s imposition of tariffs on imported cars and car parts. This is something that the auto industry is in conflict with.
American Express made a 3.4% to $99.50 decrease after keeping more money to cover potential bad loans. Further, AmEx had come to foresee the rate rise’s negligence. This means that the certified customers of American Express are having difficulty in paying their bills.
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