Fighting Words Out Of Washington Send Investors Fleeing For The Exits

Michael Teague |

Monday’s sudden late-session sell-off that followed Secretary of State John Kerry’s aggressive posture towards the Syrian regime of Bashar al-Assad continued apace throughout Tuesday, as Wall Street found itself bracing for yet another Mideastern military outing.

Kerry stressed in a press conference on Monday that “President Obama believes there must be accountability for those who would use the world's most heinous weapons against the world's most vulnerable people." Last year, the President claimed that the use of chemical weapons in Syria would be the final straw that would force the US to intervene in a conflict that has so far claimed over 100,000 lives and destroyed untold swathes of one of the world’s oldest cultures.

The Standard & Poor’s 500 index dropped 1.59 percent to end the day at 1,630.48, while the Dow Jones Industrial Average was 1.14 percent lower at 14,776.13, and the NASDAQ plummeted 2.16 percent to finish at 3,578.52. The sell-off was also accompanied by the expected jump in both oil and gold prices.



Lost in all the concern over the geopolitical and domestic consequences of a deepening US involvement in the Syrian civil war was some good economic news. According to the S&P/CaseSchiller index, home prices in the US were up 12 percent year-over-year for the month of June. Meanwhile, the Conference Board’s Consumer Confidence Index took an unexpected jump during the month of August to a reading of 81.5, an improvement on July’s reading of 81 and well ahead of expectations of a reading of 79.

Financial stocks bore a significant portion of the burden, with Bank of America (BAC) , Citigroup (C) , JPMorgan Chase (JPM) and Wells Fargo ($WFC) all ending the day significantly lower on heavy trading.

The Dow saw 28 of 30 components in the red, led by Bank of America, with Microsoft (MSFT) , JPMorgan, and American Express Company (AXP) in tow.

On the NASDAQ, tech shares ended the day lower on the heaviest volume, with Facebook (FB) paring recent gains on a loss of 4 percent, with Micron Technology (MU) and Cisco Systems (CSCO) ending lower. Apple (AAPL) was down nearly three percent after news that the company was close to releasing a cheaper version of the iPhone 5 for emerging markets.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
FB Facebook Inc. 174.52 0.78 0.45 11,498,752 Trade
AAPL Apple Inc. 159.88 2.89 1.84 24,121,452 Trade
C Citigroup Inc. 71.77 -0.34 -0.47 21,169,163 Trade
JPM JP Morgan Chase 97.84 1.98 2.07 12,434,009 Trade
AXP American Express Company 91.96 -0.90 -0.97 4,293,977 Trade
CSCO Cisco Systems Inc. 33.54 0.07 0.21 10,509,057 Trade
BAC Bank of America Corporation 26.24 0.41 1.59 71,927,178 Trade
WFC Wells Fargo & Company 53.80 0.11 0.20 22,802,389 Trade
MU Micron Technology Inc. 41.49 1.09 2.70 33,696,798 Trade
MSFT Microsoft Corporation 77.65 0.16 0.21 12,380,093 Trade
DUTZF DUTZF n/a n/a n/a 0

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Quants Inc

Quants, Inc, a California Corporation, develops, markets and operates financial technology platforms and alternative investment products offering sophisticated risk management since 2010. The Company has primarily sharpened its focus with…

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.