A weaker dollar, credit concerns and rising oil prices left markets and exchange traded funds (ETFs) lower today. Speculation that China will diversify its $1.43 trillion foreign currency reserves beyond the U.S. dollar, helped send the dollar lower against major currencies. Tim Paradis of AP reports the weak dollar continued to put pressure on the price of oil, as it rose above $98 per barrel before settling at $96.37. Remarks from New York Attorney General about conflicts of interest in the mortgage industry hit the financial stocks and ETFs.
Cisco (CSCO) reported better than expected earnings after the market close, but it wasn’t enough for Wall Street. CSCO was down 8% in after hours trading which doesn’t bode well for the market opening tomorrow. If the selling persists, be sure to dust off your exit strategy.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.