3Dollars: March 6, 2017

The markets lost ground today as investors lost their desire for risky stocks. Here are today’s takeaways…

$1 Banks led the way with the biggest retreat in the market. Though there is uncertainty surrounding upcoming jobs reports and the Fed rate hike, most of the retreat in banks is a result of profit-taking from buyer in recent weeks. No real concern here as of now.

$2 Energy stocks face pressure as companies continue to build oil rigs. Analysts are beginning to think U.S. oil companies are too optimistic about a market that is influenced by OPEC’s price manipulations. If true, there could be a huge oil glut in 2018 (meaning lower prices and profits).

$3 The Fed is more than likely to raise rates in March, so the question is how many we will see this year. This month’s jobs report may increase the likelihood of many hikes this year, but some investors fear too rapid an increase could damp the economy significantly. Time will tell.

As an aside, Snap Inc. ($SNAP) has retreated below its opening price of $24. Fundamentally this makes sense, since the company debuted with a valuation higher than Twitter and other large companies. Developing story here.

There are more 3Notes posts coming this week on top of our 3Dollars entries, so stay tuned!


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