Markets closed down on Wall Street: DJI -1.02% SP500 -1.11% Nasdaq -0.93% Gold -0.82% Oil -4.63%.
Markets got crushed. On the commodities front, Oil (NYSE:USO) got rocked $5, landing at $98.88. Gold (NYSE:GLD) sold off too, but nothing like the crazy volatile face-melting spree in Silver (NYSE:SLV) which lost over 8%.
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Today’s markets were down because:
1) Commodities and Oil got slaughtered. Apparently, the “risk off” trade was in full force after today’s US Trade Deficit report showed a widening gap. The good news is exports hit a record high. However, reducing the trade deficit seems like a rabbit being chased at the Kentucky Derby. The news was enough to get black boxes and traders dumping just about everything across the board.
2) Insiders are finally getting busted. Although the media loves the Raj Rajaratnam trial and his guilty on all 14 counts, who really gives a sh*t compared with what large banks, investment banks, and mortgage companies did to the US economy. So long as the Dick Fulds of the world are sipping champagne in Capri, Italy, these insider trading cases are basically sideshows.
3) Change of fortune? In breaking news, Cisco Systems (NASDAQ:CSCO) beat earnings after the bell. Shares were up at first, but now they are down. This will play heavily into how Tech (NASDAQ:QQQ) gets started in the morning. You can see our full Cheat Sheet of Cisco earnings here.
Now that you’re in the know, get ready to enjoy Raj’s face all over your media outlets!