Throughout the past several years, the Dow Jones Industrial Average as well as the S&P 500 and the NASDAQ have been enjoying up trends. However, today the all three of them are down; and down big! As quarterly reports started to come available today, investors cringed in disappointment. So today, we’ll take a look at how far stocks have fallen so far (1:54 PM EST), the major corporate earnings reports that disappointed investors, and we’ll chat about gold; my favorite safe haven. So, let’s get right to it…
What We’ve Seen In The Market Throughout Tuesday
Dow Jones Industrial Average – As the largest blue chip index in the United States, one has to imagine that the Dow has taken the largest hit; and if that’s your guess, you win the prize. At its lowest point today, the Dow Jones Industrial Average had fallen by more than 383 points from yesterday’s close; hitting a low of 17,294.99 for the day. Throughout the rest of the day, we’ve seen a slight recovery, but it hasn’t nearly made up for the losses seen early on. Right now (2:07 PM EST), the Dow is back to 17.438.87.
S&P 500 – Unfortunately, the S&P 500 fell right along with the Dow this morning. By 9:30 AM, the S&P 500 had fallen to 2,032.41 from yesterday’s close at 2,057.09. The downtrend would continue for the S&P 500 until 10:45, when the S&P 500 would bottom out for the day at 2,020.51; nearly 57 points below yesterday’s close. As with the Dow however, the S&P 500 has started to make a recovery; and the recovery here is a bit stronger. While the index hasn’t nearly made up for early losses, it is currently at 2,037.92.
NASDAQ – Finally, we have the NASDAQ. Following the same trend as the other 2 blue chip indices, the NASDAQ is down quite a bit today. Falling from 4,771.76, the NASDAQ hit it’s low today of 4,661.57 at 10:45 AM. As with the other indices, the NASDAQ has started to make a slight recovery, but is nowhere near making up for losses felt early on in the day. Currently, the index is at 4,709.59.
Disappointing Corporate Earning Reports
Today was supposed to be a great day in the market as big names like Microsoft and Procter & Gamble released their quarterly reports. Unfortunately, the reports just weren’t what anyone expected them to be and the disappointment equated to losses. Here are some of the largest earning reports that had investors upset…
Microsoft – Microsoft shares fell nearly 10 percent this morning as their report stirred up concerns for investors. While sales weren’t too bad, there was a disturbing trend. The report showed that sales of Windows and the Office suite to big businesses are slowing down. Also, Microsoft explained that economic jitters are likely to take a toll on sales throughout the year 2015.
Procter & Gamble – Procter & Gamble is the world’s largest consumer product manufacturer; and their report had a bit of bad news as well. Their report shows that profit fell by 31% as a stronger United States dollar brought down sales volume.
Caterpillar – The construction and mining equipment manufacturer Caterpillar had more bad news to share. Their stock fell 7.5% as net profit came in well below what was expected.
Onto The Gold
Before I get to talking about gold (Or any other precious metal for that matter), I want to make it clear that a diversified profile is best. It’s never a good idea to put all of your eggs in one basket…even gold!
With that said, as I just mentioned, a diversified profile is the key to reducing risk; and I think every profile should include at least some gold. The last few weeks have really proven my point.
Recently, gold closed over $1,300 per ounce; the highest it’s been in quite some time as geopolitical concerns, economic concerns, and other worries struck the market. Then, stocks started to rise again as investors awaited solid earning reports; but wait…the reports weren’t so solid! So, stocks dropped and once again, gold is on the rise. So, if you don’t already have gold as part of your diversification plan, you may want to strongly consider adding it!