1) Crude Creamed
Crude oil took a big 4% hit today after US oil inventories fell at a slower rate than expected.
Plus, gasoline inventories also by a whopping 1.5 million barrels. Economists expected a 1.9 million barrel decrease, so suffice to say, markets were caught off guard by this big inventory build.
Crude oil just came off an almost $7 rally off the $47.01 March low, and with today’s dip, it’s given back about half the gains
The drop in oil drove put energy stocks at the top of the decliners’ column today, with the S&P Energy ETF (XLE) dropping -1.5%. The Vaneck Vectors Oil Services ETF (OIH) did even worse with a -2.7% decline.
Both XLE and OIH made new yearly lows today, completely negating their late-March to early-April rallies.
2) But Still, We’re Hanging in There
IBM (IBM) suffered a big post-earnings decline today, which pushed the Dow Jones Industrial Average down -0.4%.
And this afternoon, House Speaker Paul Ryan said that tax reforms may not materialize until after the summer, which put some late pressure on stocks.
However, the S&P 500 was only down -0.2% on the day, and the small cap Russell 2000 rose 0.4%.
Biotechnology was also solid, helping the Nasdaq rise 0.4%.
Clearly, the post-election rally has stalled out a bit, but things aren’t really falling apart either.
Every time it feels like the bears are getting an edge — like last Thursday — the buyers show up out of nowhere.
3) Scott Redler Talks the Banks and More on CNBC
Yesterday, T3 Live Chief Strategic Officer Scott Redler appeared on CNBC to discuss the banks and more.
Scott went over the action in XLF, BAC, and GS, including the levels you need to watch in these names.
GS is particularly important because it tends to give hints on broader market direction.