Daily Market Recap

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Stocks pulled in sharply today after several companies gave reduced guidance for future quarters. The S&P 500 was down 1.44% and the Dow closed off 1.82%. Several companies disclosed on quarterly conference calls that sales growth slowed throughout the quarter and they then reduced guidance for their respective businesses for future quarters. Trading volume was light today and the absence of buyers was as important as the selling pressure seen in the markets. 

Materials and energy stocks were the worst performers with telecom and utility stocks the best performing. Materials stocks sold off in sympathy with poor results and guidance from DuPont. The steel sector came under pressure after AK steel reported earnings below expectations.

Financials lagged the broader market. Capital market activity for banks continued to be strong but when banks report net interest, margin figures have been less than expected. Some insurers and credit card issuers bucked the trend today and performed well. 

Industrials traded just ahead of the market. Some industrials reported in line earnings but were sold off in response to lower projected growth estimates. Illinois Tool Works was one of the few names in the space that reported earnings and traded higher on the release.

Transports were one of the best performing areas of the market. UPS reported earnings and traded up better than 3%. Airlines traded slightly higher also.

Crude moved lower by 2.25% and put the energy space under pressure. Natural gas traded higher by better than 2% on reports that we may have a cooler than expected winter.

Weakness in metals, precious metals and chemicals led to selling in the materials sector. Concerns over slowing global growth were an overhang on the entire space today.

Source: PFS Group

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