Friday started with a better-than-expected September jobs report, but a pre-market rally quickly disappeared, as investors remain unconvinced that the cloud over the U.S. and European economies has lifted. At the end of the day, the Dow fell 20 points — it was actually the first time since Sept. 20 that the index had not fallen or risen by triple-digits, Zero Hedge points out.
Of course, that doesn’t mean that the trading day wasn’t filled with volatility — the VIX was down only about 0.2% to 36.2, and the Dow crossed the break-even point 37 times on the day.
Banks fell hard on the day, with Bank of America (BAC) closing down 6.1% at $5.90 and Morgan Stanley (MS) off by 6.2%. Banks were hit by numerous ratings downgrades in Europe, including Moody’s downgradesof banks in Great Britain, and Fitch downgrades of Spain and Italy.
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