December 4, 2018

After a 6 day rally that saw the S&P 500 gain 6% we weren’t surprised to see some profit taking ahead of tomorrow’s National Day of Mourning during which the stock market will be closed, but we didn’t expect to see the index drop 3.2%, giving up more than 50% of recent gains.  The focus today was on a flattening yield curve which some believe may be pointing to slower economic growth.

Dow opened -100

At the close:

  • DOW -799 to 25027
  • S&P -90 to 2700
  • NASDAQ -283 to 7158
  • OIL -.10 to 52.85
  • GOLD +4 to 1244

In corporate news shares of luxury furniture seller RH (formerly Restoration Hardware) already up more than 40% for the year, gained 11% after a strong quarterly report that included increased guidance.  Luxury home builder Toll Brothers reported better than expected revenue and net income but said overall orders have declined sending the shares 7% lower at the open for a rally to -2%.  Dollar General also reported better than expected sales and earnings but opened 7% lower on disappointing guidance.