Today markets were a bit of a roller coaster amidst a ton of news (WikiLeaks/CIA hacking, health care bills, wiretaps). However, we see through the madness to what matters to our portfolios. Here we go:
$1 Oil futures posted a massive decline of more than 5% based on reports of record inventories by the Energy Information Agency. As a result, energy companies dominated the top decliners list today. This is perhaps an opportunity for folks to get in and buy on a pullback if they have the patience and conviction to wait on the recovery.
$2 Financials lead the way for most of the day before giving up its gains. The market focused on potential gains from commercial banks like Bank of America ($BAC +0.02%) and JP Morgan ($JPM -0.22%) as private sector payrolls reporting came in strong. The private sector jobs report foreshadows the overall jobs report, expected to be strong, supporting the hike.
$3 The health care bill(s) introduced this week to replace the Affordable Care Act have received mixed reviews from major players in the insurance and health care industries. Depending on the markups from prominent congressional committees today, there could be massive moves in the health care space. As an aside, President Trump conducted meetings specifically about high medicine costs, so some additional legislation directed at big Pharma (Regeneron, Gilead, GlaxoSmithKline, etc.) could also be on the horizon.
Until we know more…