The stock market had several issues to deal with on Friday, not the least of which was options expiration. As the market opened there were two big companies, both Dow Industrial components, that announced less than stellar earnings news, that being GE and C, General Electric and Citigroup. These companies started the Dow down about 30 points at the bell while the NASDAQ opened rather quietly. This did not last too long.
As the day wore on, the sellers dominated trading and pushed prices down mostly all day such that by the end of the day the Dow was down over 200 points and the NASDAQ was down over 50. On Friday there was no celebrating the buying opportunity, as that had been done the day before. No, on this day, there was mostly just rationalizing the fact that many stocks were down. The loudest point was that options expiration had pushed the volume and the volatility up.
While we may agree with the high volume being related to options expiration, there was persistent selling all day long and only one Dow Industrial component was up on the day and that was McDonald’s. All of the other components were down in a very pervasive down day (I am liking the P words today, I guess). The stock market got pounded with heavy volume—that is the important part to remember. The other part is that the Dow has dropped below all of its trading for year. The stock market must try to pull it together on Monday—we don’t expect a lot, if any.
BE CAREFUL…
Dow Industrials: 10,667.39 -213.32
RYVNX: 18.67 (what a difference a day makes)
RYAIX: 21.95
TLT: 92.38
BEGBX: 13.34
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