Is the party over? That is what many investors are asking themselves as the Dow Jones Industrial Average points towards a second straight day of potential triple digit losses. This is coming on the heels of McDonald’s and Pfizer getting ready to release their earnings report, and the President set to give his first ever State of the Union Address says CNBC.
Most of the markets around the world were trading down today, so it may have little to do with domestic politics and more to do with a negative sentiment in general about the state of the markets as they stand right now. There are definitely a lot of unanswered questions about where this market is headed.
Many people have been saying that this market is overbought in the first place. They hold the belief that people have gotten overly excited about things like tax cuts, and this has led to the inability for them to see that really prices have gotten all too high in general.
Another sell-off for the second day in a row may be enough to shake some people from their euphoria and show them that actually this market may be overdue for a correction. It has been riding to new high after new high for a very long time now.
There are some interesting pieces of market data that are due out for today which could help to shape the way in which the market moves. You have earnings reports from McDonald’s, Pfizer, Aetna, Harley-Davidson, and Polaris among others. You can follow that up with the S&P/Case Shiller Home Price Index to come out at 9am. The Dallas Fed’s Service Sector Outlook will also be released at 10:30am.
All of these pieces of data have the potential to move the markets ever so slightly in ways that we might not even be able to detect right away. They could turn what looks to be yet another down day into something better, or perhaps they will just contribute to the downward slide that has put so many of us into a state of worry at this point.
The markets are a fickle place, but there is no doubt that whatever happens will impact the fortunes of us all. Political and economic turmoil are sure to follow whatever happens with the market, particularly if it takes a downward dive for an extended period of time.