Markets closed down on Wall Street: DJI -1.62% SP500 -1.40% Nasdaq -1.53% Gold -0.65% Oil -2.84%.
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Today’s markets were slaughtered because:
1) Oil Production is up. Saudi Arabia curbed oil supply fears later in the day by announcing they would step to the plate and up oil production significantly. The drop in oil prices was somewhat extreme given yesterday’s data that for the first time in history oil consumption outpaced production in 2010.
2) Dollar prices firm. The dollar (NYSE:UUP) finished the day up 1.23% versus the Euro, + .05% versus the Yen, and +.09% against the Pound. Currency values surged on news that QE3 probably isn’t coming anytime soon. The same news also sent investors into a panic and prompted stock sell-offs.
3) Bad news overseas. A number of reports of weak economic data came in today from across the pond in England (NYSE:EWU), where UK manufacturing output was significantly lower than expected. Worries continued to swirl amid default concerns related to Greek Debt and ECB offered little reassurance. News from Asia was crappy too as Chinese markets (NYSE:FXI) were growing slower than expected and a trade surplus was below-par level expectations, Korean bank (NYSE:EWY) raised its interest rates, and industrial production slowed in India (NYSE:IFN). The aggregate news combined to put a damper on the market.