We have been warning of a possible selloff or a test to new lows and today’s action could be the start of something more serious. Futures were slightly higher when the overseas markets opened but took a turn for the worse once Germany reported higher unemployment numbers.
The market opened sharply lower despite decent economic news here at home and hit its lows after hearing the Supreme Court’s decision on the healthcare law which was upheld. There is a lot of debate on what impact ObamaCare will have but the insurance mandate has been upheld for now.
Elsewhere, Initial Claims came in at 386,000 versus expectations for a print of 385,000. Continuing Claims came in at 3.29 million versus a forecast for 3.28M. Elsewhere, Personal Consumption rose 2.5% which was lower than the forecast for a reading of 2.7% while Gross Domestic Product (GDP) matched expectations after rising 1.9%.
Financial stocks are taking a hit after word spread JPMorgan’s (JPM, $35.12, down $1.66) trading loss could reach $9 billion. This is unconfirmed of course but if it’s true, shares could quickly fall back to $30.
As far as the market, The Dow is down 147 points to 12,479 while the S&P is lower by 16 points to 1,315. The Nasdaq is off 52 points to 2,823. The selloff has meant good news for our put options so let’s go see where we are at.
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