Top 3 Reasons Markets were Down After Bin Laden
Markets closed down on Wall Street: DJI -0.02% SP500 -0.18% Nasdaq -0.41% Gold -0.83% Oil -0.66%.
Markets never saw a red close last week, but the Osama Bin Laden news wasn’t enough to keep momentum rolling. Markets opened higher sold off in a downtrend for the entire day. On the commodities front, Oil (NYSE:USO) gave up some pennies on the strange idea there will be less uncertainty in the Middle East now that Bin Laden is gone. Gold (NYSE:GLD) took a breather. Silver (NYSE:SLV) continues to be a place for those who love roller coasters as the precious metal jumped huge in the morning after crashing over the weekend, then crashed the second half of the day.
Today’s markets were down because:
1) Economic data was nothing special. ISM Manufacturing expanded in 17 of 18 categories, but it still slipped month-over-month. Don’t Miss: CHART OF THE DAY: Manufacturing Expands for Twenty-First Month in a Row.
2) Construction spending is still super weak. The headline numbers were up month-over-month, but we still clocked in 6.7 percent lower than March 2010. And if you think that’s bad, construction spending hasn’t been this low since before we ushered in the new millennium. Home builders (NYSE:XHB) took a hit as D.R. Horton Inc. (NYSE:DHI) dropped 2.8%, PulteGroup, Inc. (NYSE:PHM) fell 2%, KB Home (NYSE:KBH) dropped 1.6%, Lennar Corporation (NYSE:LEN) slid 3.3%, Toll Brothers, Inc. (NYSE:TOL) fell 1.8%, The Ryland Group, Inc. (NYSE:RYL) crashed 4%, and NVR, Inc. (NYSE:NVR) only slid 0.59%.
3) Earnings were s0-s0. Some had a big miss today from Loews (NYSE:L), but there were also some noteworthy wins out of DISH Network (NASDAQ:DISH), Humana (NYSE:HUM), and Automatic Data Processing (NASDAQ:ADP). If you love staying in the know during earnings season, join us for our coverage here all day long.
Now that you’re in the know, get ready to hear more than you can handle about Bin Laden!