Top 3 Reasons Markets Were Down Like Chris Brown
Markets closed down on Wall Street: DJI -0.15% SP500 -0.36% Nasdaq -0.31% Gold +0.09% Oil +1.63%.
Today was all about Energy (NYSE:XLE). Oil (NYSE:USO) is back on fire as prices rose to $105 — a scary proposition for the economy as we head into the summer months for travel, air conditioning, and new clothes. In big news, Japan (NYSE:EWJ) has restored power to the six nuclear reactors and Libya continues to be the focus for the Middle East. Markets opened flat to down and basically chopped in a narrow trading range all day.
Today’s markets were down because:
1) Defensive stocks were in play. As we mentioned above, Energy (NYSE:XLE) was the story of the day. However, investors also sought out shares of other safe-havens like Healthcare (NYSE:XLV) and Utilities (NYSE:XLU). Outperformers include St. Jude Medical (NYSE:STJ), Entergy Corporation (NYSE:ETR), and Royal Dutch Shell Don’t Miss: 3 Defensive ETFs to Hedge a Market Pullback.
2) Walgreen Co. (NYSE:WAG) disappointed on earnings. The drugstore pissed off Wall Street and sold off to the tune of 6.58%. Rite Aid (NYSE:RAD) got slammed 3.74% on the news, and CVS Caremark (NYSE:CVS) escaped with a more narrow 0.95% loss. Now check out our Retailer Roundup: Your Cheat Sheet to the Winning and Losing Stocks.
3) Research in Motion (NASDAQ:RIMM) and stole the tech spotlight. Research in Motion (NASDAQ:RIMM) announced the Blackberry Playbook will go on sale April 19th for $499. PlayBook will be available through Best Buy (NYSE:BBY), AT&T (NYSE:T), Verizon (NYSE:VZ), Radioshack (NYSE:RSH), Sears Canada and Wal-Mart (NYSE:WMT). However, shares of Apple (NASDAQ:AAPL) shrugged off the new as iPad2 is now on backorder for 4-5 weeks.
Now that you’re in the know, try to stay away from R&B disaster Chris Brown!