The Dow Jones Industrial Average is looking to avoid its first decline in five days as it fell over 150 points to start Thursday’s trading session.
Investors fretted over earnings reports as retailer Macy’s reported that same-store sales increased by just 1.1 percent in November and December. Furthermore, Macy’s reduced its revenue guidance for fiscal 2018.
In addition, American Airlines cut its revenue growth forecast for the fourth quarter, while other airlines–Delta Air Lines, JetBlue Airways and Southwest Airlines–fell as much as 3 percent.
Fourth quarter earnings will be ramping up as the big banks, such as Bank of America, Wells Fargo and JP Morgan Chase are scheduled to report earnings next week.
“The power of the recovery rally in US and global equities has been impressive,” said Michael Shaoul, chairman and CEO of Marketfield Asset Management. “As encouraging as all of this has been to witness it does not change the fact that a sell-off of this magnitude does not happen in a vacuum.”
“The decline marks a key downward-shift in the long technology driven bull market,” Shaoul added. “There is simply no way to tell at present whether we have witnessed the completion of a brief but tumultuous sell-off.”