Economic Journal - Wednesday, 3/22/2017Submitted by Miller Financial Group, LLC on March 22nd, 2017
The big news today is what happened to the markets yesterday. After starting yesterday’s trading session on a relatively positive note, sentiment turned toward a selling posture which continued for the balance of the session. The Dow posted its biggest one-day percentage loss since September and the S&P500 followed suit posting its steepest loss since October 11. It’s not hard to find “expert” opinions on reasons for the steep sell-off. Most experts are chalking it up to concerns that the Trump administration will fail to deliver on its pro-business promises and other promises like the overhaul of Obamacare. Health care form faces its first test on Thursday when the House GOP’s health care reform plan faces a vote. Many experts are speculating that any delay in this bill signals delays in other Trump promises which will make investors nervous. Another factor contributing to the negative turn in the markets is the flattening yield curve which has hit the financial sector pretty hard. Oil continues to be a drag on the markets with ongoing supply concerns weighing heavy on prices. After hitting a 52 week high of $54.45 on February 23, oil has slipped 1.5% to $47.50. It has been a light week of economic data with the only significant report released this morning on existing home sales and the news wasn’t positive. Home sales were down in February because of a lack of inventory. Existing home sales for February were down 3.7% from January’s record month. All of this has investors a little nervous today with all of the major U.S. indices firmly in negative territory here in early trading. Results overseas are similar with European and Asian markets all seeing red.