(Tuesday Market Open) There’s that old Wall Street mantra: “Buy low; sell high.” Well, the only way to do that is if the market goes down and up again, and over the last few weeks we’ve had plenty of that. It’s the “glass-half-full” way of looking at volatility—fluctuating prices can give investors opportunities to enter and exit the market at a price they may be looking for.
This morning, momentum seems to have swung into positive territory after yesterday’s rout, as one of the nation’s large retailers reported better-than-expected earnings and a report said that China and the United States have re-started trade talks.
In corporate earnings news, Home Depot (HD) nailed it. The home improvement retailer said it earned $2.51 per share on revenue of $26.3 billion. ForQ3, HD was expected to report adjusted EPS of $2.26 on revenue of $26.26 billion, according to third-party consensus analyst estimates. After rising in pre-market trading, the Dow Jones Industrial Average ($DJI) component’s shares sank after comments from the company’s CEO on tariffs.
Home Depot is just one of several retailers reporting in the next few days. In addition to watching the h
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After a 2% rally last week, stocks got off on a very different foot Monday. The tech and financial sectors helped lead the way lower amid geopolitical concerns and tech demand worries. A stronger dollar could be a sign that some investors are adopting more of a “risk-off” stance.
A recent slide in oil prices and disappointing news out of China seems to have underscored fears about global economic growth, even as investors appear to worry about the Fed’s reaction to inflation in the United States.
The market starts Friday with pressure expected, in part due to the Fed’s expectations of more rate hikes and from a wholesale inflation report that showed prices climbing more than analysts had expected.
As widely expected, the Fed left rates unchanged at its November meeting, setting up what looks like strong odds for a final hike next month. Its statement cited continued economic strength, but observed that business fixed investment seems to be moderating.
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