The markets started the day only slightly lower, but as investors began to focus more on Washington news, selling pressure pushed stocks to lows. Though the markets are still higher on the week, today gave back most of those gains. The Dow 30 was lower by 327, the S&P 500 closed down 40, and the Nasdaq 100 was once again the hardest hit, losing 157 on the day.
Sector News
Semiconductors were hit hard again today, completely erasing all Monday's gains. The selling was broad-based across the entire sector today ahead of all the earnings coming out in the next few weeks.
Financials were another weak area of the markets today as the banks erased all of yesterday's gains. The banking sector as a whole remains under the 200-day moving average and now posts a loss on the year of about 6%.
Homebuilders suffered another blow today as the sector was downgraded by Bank of America (BAC ). The downgrade pushed the sector to new lows on the year and now shows losses greater than 20% for 2018.
Stock News
Travelers Insurance (TRV ) shares were in the news as the company reported earnings that came in better than expected. Revenue was also higher than expected as the company had successes in both divisions of its insurance offerings. Client retention came in higher than expected as well. Shares remain near lows of the year.
Phillip Morris (PM ) shares broke out of a longtime range today as the company reported earnings that came in well above expectations. Revenue was also strong and analysts focused on their higher pricing which helped over all profits. The company left their full year outlook unchanged, however, which many see as a signal for future weakness.
Constellation Brands (STZ ) CEO is stepping down on March 1 next year but will remain as chairman. Bill Newlands will take the helm and continue with their efforts in the cannabis space. Newlands supported their recent investment in Canopy Growth (CGC ) which is now a 38% interest, and has been vocal about their need to expand outside their wine and beer business.
