The Closing Look

Stocks opened lower on Wednesday after the latest round of mostly disappointing earnings and economic data was announced. A handful of well-known stocks gapped down after reporting earnings which is not good for the market. FLT, PXD, ADPT, PAYC, DXCM, CERN, DATA, ZEN, PLT, MTCH, & HLF were some of the stocks to fall on earnings. Alibaba (BABA) opened higher but quickly turned lower which is not a healthy sign for the market or leading stocks. Economic news was less than stellar. ADP, the country’s largest private payrolls company, said the U.S. economy only created 147,000 new jobs last month, missing estimates for 170,000. The Fed held rates steady for the 7th straight time and said the case was getting stronger for  rate hike in December. Elsewhere, oil prices plunged after inventory levels jumped to the highest level in its 34 year history.

Gary’s Thoughts: Just a lot more weakness…BUT NEAR TERM, WE MAY GET SOME RELIEF. PUT/CALLS HAVE SPIKED BIG TIME INDICATING EXTREME FEAR AFTER A DROP. Often, that gets you close to a rally/bounce. Bigger picture remains yuck!