Markets closed down on Wall Street: DJI -1.14% SP500 -1.1% Nasdaq -1.06% Gold +0.47% Oil -2.05.
Markets got slammed today when the S&P (NYSE:MHP) came out of the blue and downgraded the US Credit Rating outlook to “Negative”. On the commodities front, Oil (NYSE:USO) got hit hard and slid $2 although OPEC said they won’t be increasing supply any time soon. Gold (NYSE:GLD) and Silver (NYSE:SLV) resumed their climb to the moon as investors are now fretting whether the US will receive a full downgrade.
Today’s markets were down because:
1) Yes, the US really just took a bullet in the armor. Many investors and analysts have been warning of a downgrade to the US credit rating, but it’s another phenomenon to actually see one in the wild. (Check Out: The Shocking S&P Note) Plain and simple: a lot of investors are reducing risk in case the next credit rating headline pierces the armor. But isn’t the US “Too Big to Fail”?
2) Earnings continue to come in mixed. Strangely, solid earnings from Citibank (NYSE:C) and Halliburton (NYSE:HAL) couldn’t drag indexes higher. The biggest miss of the day goes to drug company Eli Lilly (NYSE:LLY) which fought all day to make up ground on the earnings blunder. Get ready for the rest of the week as earnings just keep pouring in like Passover and Easter guests.
3) Everybody hates tax day. Too bad the Federal government didn’t shutdown. Taxes were due today and 55% of the nation should’ve been sending a check to Uncle Sam. On such a special day, Wall St. Cheat Sheet’s expert contributor Ed Dolan takes a look at whether Tax Reform is Real, or just more political B.S.
Now that you’re in the know, enjoy the NBA playoffs!