The markets finish the day in the red after oscillating between positive and negative on the day thanks to a slew of economic news that was mostly negative. The Dow 30 closed lower by 33, held back in part by Caterpillar (CAT ) which was downgraded and Home Depot (HD ) which missed on earnings. The S&P 500 only lost 2 on the day and the Nasdaq was muted as well with a loss of only 5.
Sector News
Oil prices recovered slightly today as OPEC remains on it's current production levels. The price of oil has been higher this year as OPEC committed to reduce production in addition to the effects of Venezuelan and Iranian sanctions. In the U.S. analysts expect crude inventories to come in higher for a sixth straight week.
Financials attempted to recover from yesterday afternoon selloff just below the 200 day moving average. The overhead resistance has been a focus point for investors assuming that the popular moving average will act as resistance in the short term.
Stock News
Home Depot (HD ) shares were lower on the day as the company was the latest retailer to report earnings. Results showed earnings lower than expected ($2.09 vs. $2.16) thanks in part to a one time, 16 cent charge related to their Interline Brands division. Revenue was also lower than expected which prompted an increase in their dividend as well as an additional $15 billion share buyback.
Discovery Communications (DISCA ) shares were lower on the day thanks to earnings as well. The company did report earnings which were better than expected but revenue came in less than Wall Street's predictions. The company did seem positive on guidance for 2019 but the expansion comments come at a cost which investors seemed to be factoring in.
Tesla (TSLA ) shares started the day lower as it was reported that the SEC asked a federal judge to hold Elon Musk in contempt of court on grounds that he violated his social media settlement when he tweeted about production volumes last week. Musk defiantly fought back tweeting "Something is broken with SEC oversight" and commented that he did not break any agreement.
